EDMONTON: The Canadian Taxpayers Federation (CTF) has challenged Alberta Premier Ralph Klein to honour his pre-election promise that "the only way taxes are going in this province is down."

Albertans are paying $671 million in health care premiums this year. The Mazankowski report recommends increasing premiums so that they will cover 20% of health care costs. That could mean a 33% increase to the monthly premium of $34 for individuals and $68 for families.

"Health care premiums are a tax, period," said CTF-Alberta director John Carpay. "It is money earned by individuals and then taken by government and spent by government."

"Alberta government spending on programs, per person, is 20% higher than the Canadian provincial average, and 40% higher than in Ontario. If the Alberta government wants to take in more money from health care premiums, there is no excuse for not cutting personal income tax by the same amount," added Carpay.

In a letter to Premier Klein, the CTF calls for an income tax cut from 10% to 9.5% if the government raises health care premiums:

"The CTF supports changes to health care that do not amount to a tax increase. Increasing health care premiums, or any other tax, is acceptable only if there are equivalent cuts to personal income tax or another tax. For example, if health care premiums rise 33%, generating an extra $224 million per year, personal income tax should be reduced from 10% to 9.5% to make the measure revenue-neutral.

I trust that you will honour your promise that "the only way taxes are going in this province is down."