EDMONTON: As part of its 1999 pre-budget submission to the province of Alberta, the Canadian Taxpayers Federation (CTF) is calling for $250 million in tax relief, through reductions in the province's two surtaxes.

"It's time for taxpayers to get a break from historically high and internationally high tax rates," said CTF Alberta Director Mark Milke. "Those two surtaxes were imposed twelve years ago to get rid of deficits that disappeared five years ago. The province must begin to eliminate them in 1999."

Milke noted that property and payroll taxes are increasing, and that without a provincial reduction in taxes, taxes will go up for Albertans.

Points from the 26-page submission to Treasurer Stockwell Day and Treasury Board include:

Albertans would have paid $925 million less in provincial personal income tax in 1998 had 1983 tax rates been in effect. (38.5% and no surtaxes, versus actual 1998 rates of 44.0% and two provincial surtaxes.)

Albertans would have paid $600 million less in provincial personal income tax in 1998 had the basic personal exemption and tax bracket thresholds been fully indexed for inflation since 1988. $600 million is the estimate of the province's tax take due to 'bracket creep' in 1998 alone.

The province has consistently overshot predicted program spending targets in each of the last four years, including at least $675 million more than expected in the current budget year.

The department of Economic Development should be closed.
Health care costs are not the reason Canada's taxes are higher than those in the United States.

Recommendations for federal-provincial discussion: re-indexing the basic personal exemption and tax bracket thresholds for inflation; alternatives to the Canada Pension Plan (CPP); an immediate end to the 20 percent limit on foreign investment by the CPP Investment Board; Employment Insurance (EI) tax reductions; and a reduction in capital gains taxes.