CALGARY: The Canadian Taxpayers Federation (CTF) today launched its campaign to eliminate provincial personal income tax in Alberta. A CTF commissioned study by Dr. Jean-Francois Wen of the University of Calgary Economics Department shows this could be achieved by 2015 or sooner.

Dr. Wen's study shows that income generated by the Alberta Heritage Savings Trust Fund (the "Fund") could grow and eventually produce enough income to replace what is taken from Albertans in personal income tax.

"Alberta has a unique opportunity," states CTF National Communications Director Troy Lanigan. "High oil and gas prices combined with debt elimination make it possible to implement a plan to eliminate income taxes"

Although subject to many variables, the study shows that income tax freedom by 2015 is possible if 50% of oil and gas revenues were dedicated to the Fund each year, combined with reinvestment of the Fund's income, controls on government spending and a strict definition of the Fund's purpose.

"Central in the study is the need to safeguard the Fund from political interference," states new CTF-Alberta director John Carpay. "Both the Alaska Permanent Fund and Alberta's Heritage Trust Fund were created in 1976. Alaska's Fund is worth $27-billion (US) and provided cheques last year to every Alaskan citizen for $1,964 (US). Alberta's Fund on the other hand is worth $12-billion and its income simply goes to general revenues."

"If we agree that the Fund should be used to eliminate income tax than we must specify its mandate, remove its control from the politicians, and subject changes or withdrawal from principal to a province-wide referendum," said Carpay. "It is precisely this kind of discipline that has made the Alaska Permanent Fund as success story, and can no doubt make the Alberta Heritage Savings Trust Fund an equal success story."

"The benefits of our proposal are many," added Lanigan. "On the tax side we're providing tremendous incentive to work, invest and spend. On the resource side we're trading oil and gas volatility for a steady and predictable stream of revenue. Moreover, we know that oil and gas will not always be there - but the Fund will."

The CTF wants to inject this idea into the election but more importantly wants to make the goal of income tax elimination a long-term campaign as the future of a post-debt Alberta is debated.

A copy of the study is available on the CTF's web site www.taxpayer.com