"Where is our tax cut, now that the debt is gone " demands CTF
Author:
John Carpay
2005/03/30
Premier Klein's government congratulated for abolishing Alberta's debt
Debt freedom should mean tax cut
No major tax cuts thanks to politicians increasing spending by 90% in eight yearsEDMONTON: The Canadian Taxpayers Federation (CTF) today congratulated Premier Klein's government for eliminating Alberta's debt, which previous Progressive Conservative governments had built up to $22.7-billion by 1993.
"In Alberta, debt repayment was no accident, but a deliberate choice. Other provinces - and the federal government - should follow Alberta's example of legislating a schedule for debt retirement," stated CTF-Alberta director John Carpay.
The servicing costs on Alberta's debt reached their high point in the 1994-95 fiscal year, at $1.7 billion, when Alberta's population was 2,704,900. In that year, annual debt servicing costs were $645 for every man, woman and child in the province, or $2,580 for a family of four.
"Back in 1994, Albertans were losing twelve cents of every provincial tax dollar to debt servicing costs - money not available for roads, policing, infrastructure and other programs. For the average Alberta family in 1994, debt servicing costs worked out to over two hundred dollars per month," added Carpay.
Considering Alberta's cumulative inflation of 28% since 1994, that $1.7 billion in debt servicing costs is the equivalent of $2.2 billion in 2005.
Alberta's spending on government programs has risen 90% in the past eight years, from $12.7 billion to $24.1 billion, while Alberta's population grew by 15% during the same time period.
"Most of the savings have been spent by politicians and bureaucrats, rather than staying in the pockets of Albertans," continued Carpay.
"It's time that Albertans started to reap the benefits of debt freedom by paying less tax. So far, tax cuts have been tiny compared to the huge spending increases by politicians," concluded Carpay.