Ottawa is not the only city to which Albertans are sending more money in 2003. We are also sending more provincial tax dollars to Edmonton, in five ways.

First, Premier Klein raised the health care premium tax by 29%, requiring each Alberta family to pay $1,056 per year, or $528 for individuals. Ten months later, some Conservative MLAs still say this tax increase was part of "health care reform." These folks should contact Alberta's Finance Ministry, which readily admits that health care premiums go into general revenues. Health care premiums don't pay for health care any more (or less) than fuel tax or VLT revenues. Further, the Mazankowski Report on health care reform, at page 54, recommends against increasing health care premiums. Although some low-income Albertans are exempt from this tax, $1,056 is a big bill to pay for a family getting by on $35,000 per year. Breaking it down into "easy" installments of $88 per month doesn't change that fact.

Second, Albertans will pay more provincial income tax this year because the basic personal exemption has not risen 4.3% to keep pace with inflation. Leaving this exemption at $13,525 for 2003 means a "bracket creep" tax increase. Alberta should lead by example and show the federal government the right course of action, by fully indexing tax brackets to actual increases in the cost of living.

Third, the Alberta government is collecting an additional $331 million in "sin taxes" on alcohol and tobacco. If promoting good health was the real purpose of this tax increase, it would have been matched dollar-for-dollar with a $331 million tax cut to health care premiums, personal income tax, or some other tax. But no such luck.

Fourth, regional health authorities are taxing businesses with a new "food inspection fee" ranging from $100 to $500 per year. A drug store, which sells chocolate bars and is never inspected for food safety, must also pay the new "fee." This new tax on Alberta businesses is being paid by consumers in the form of higher prices, by employees in the form of lower wages, and by shareholders in the form of lower returns. Isn't it funny how health inspections used to be paid for out of the government's annual revenues of $20 billion, but must now be paid for by a new "fee" Wasn't the $20 billion enough Politicians never raise taxes without invoking some sacred cause that you cannot argue against, like "health care" or "food inspection."

Fifth, the Alberta government has raised the cost of various fees and licences by 30% to 400%. An increase based on inflation would have been legitimate, but this is simply another tax grab.

With a new provincial budget this March, Premier Klein has an opportunity to keep his pre-election promise to Albertans that "the only way taxes are going is down." To keep his promise, Premier Klein must limit growth in spending on government programs, now 53% higher than six years ago. During the same time period Alberta's population grew only 12%. It was true ten years ago, and it's true today: the Alberta government has a spending problem, not a revenue problem.