• Health care premiums gone by January 1, 2009
  
• Program spending up 12% from last budget

EDMONTON: The Canadian Taxpayers Federation (CTF) is welcoming the decision by the Stelmach government to eliminate health care premiums sooner than promised, but is critical of the 12 percent increase in program spending.

"Undoubtedly, taxpayers will be pleased to see the hated health care premium eliminated ahead of schedule," declared CTF-Alberta director Scott Hennig. "The CTF has long campaigned for their elimination and it's certainly satisfying to know Albertans will be saving hundreds and thousands of dollars each year starting in 2009."

Single individuals will save $528 per year and families will save $1,056. Even Albertans whose employers pay their premium will see income tax savings due to the fact that the payment is considered a "taxable benefit" for the employee. The savings from the elimination of this "benefit" will range from $96 to $734 depending on your income and family type.

However, the CTF was less than impressed with the 12 percent increase in program spending from last budget.

"This is now four budgets in a row where the Alberta government has had a double-digit increase in program spending," continued Hennig. "This rate of spending increase is simply not sustainable."

"When revenues are growing by 2 percent you can't increase spending by 12 percent. The math just doesn't work," said Hennig.

"Eventually the government's luck will run out and taxpayers will be faced with higher taxes, cuts to their programs, the depletion of their savings or new debts to pay off. Either way it's bad news," concluded Hennig.

Prior to the 2008-09 Budget, the CTF submitted 15 recommendations to the Alberta government. The submission, Trouble on the Horizon, can be found on-line HERE