EDMONTON: The Canadian Taxpayers Federation (CTF) is calling on the Alberta Government to provide tax relief to Albertans in light of the projected $2.8 billion surplus announced in the First Quarter Fiscal Update.

"The CTF is encouraged by the recent comments by Premier Klein and Finance Minister Shirley McClellan that the Alberta Government is once again considering tax relief for Albertans," stated CTF-Alberta director Scott Hennig.

The CTF is renewing its call for the elimination of health care premiums for all Albertans, as well as the elimination of the 3% tax on insurance.

"Health care premiums are an unfair, regressive form of taxation," added Hennig. "Whether your family earns $35,000 or $100,000 a year, you still pay $1,056 in health care premiums. This onerous tax burdens those families who can least afford to pay."

For a family earning $35,000 a year, the $1,056 in health care premiums is equivalent to 3% of their annual income. For a family earning $100,000 a year, the $1,056 in health care premiums is equivalent to 1% of their annual income.

"The elimination of the 3% tax on insurance would help the Alberta government meet its goal of reducing insurance costs for all Albertans," stated Hennig.

The Alberta government collects $875 million annually in health care premiums and $186 million from tax on insurance. The elimination of both taxes would put over $1 billion back into the pockets of taxpayers, and would cost the government less than 4% of their projected $29 billion revenue for 2005-06.