On January 29, 2001, prior to the provincial election in which he received his third mandate, Premier Klein promised Albertans that "the only way taxes are going is down."

Premier Klein broke his promise on March 19, 2002 by raising the health care premium tax to $1,056 per year for Alberta families - a 29% increase. Premier Klein raised health care premiums and other taxes by $722 million and reduced corporate taxes by $81 million, for a net tax increase of $641 million.

Contrary to what some Conservative MLAs have asserted, this tax increase had absolutely nothing to do with health care reform, and was not recommended in the Mazankowski Report on health care reform. Health care premiums go into general revenues and do not pay for health care any more (or less) than other taxes.

Alberta's Budget for the 2003-04 fiscal year will soon be presented to the Legislature, and Premier Klein now has an opportunity to reverse last year's tax increases. To equal the size of last year's tax hike, taking into account Alberta's population growth and inflation, the tax cut in this year's budget should be at least $680 million.

There are many ways for Premier Klein to cut $680 million in provincial taxes. The health care premium tax could be reduced from $1,056 to $277 for every Alberta family. Or Alberta's single rate income tax could be reduced from 10% down to 8.6%. Or the government could reduce business taxes by 28%, or the provincial school property tax by 59%, or revenues from VLTs and other gaming by 58%. Or the government could eliminate both the nine-cents-per-litre provincial fuel tax and the hotel room tax.

Some say the provincial government can't "afford" tax cuts in this budget. But whose money is it anyway When I work to earn $100, do those $100 belong to me first, with three levels of government then taking $49 away from me Or do politicians and bureaucrats have an inherent right to the $100, of which they graciously allow me to keep $51 Anyone who says that a government can't "afford" a tax cut is making the assumption that all wealth belongs to the state, or that politicians are entitled to a "first claim" to workers' wages. In light of the fact that the average Canadian in 2002 worked from January 1 to June 27 to support three levels of government, taxpayers are the ones who can't "afford" to feed the appetites of greedy governments.

There are other reasons for Premier Klein to cut taxes in Budget 2003-04. In the "Talk it up, Talk it out" and "It's Your Money" surveys, Albertans ranked tax cuts as a far higher priority than spending increases. Tax cuts will sustain job creation by increasing consumer purchasing power, and help Alberta to maintain its advantage in a global economy. A tax cut will raise the standard of living for all Albertans, because every tax cut is a pay raise. Responding to what Albertans want, creating jobs, maintaining the Alberta advantage, raising the standard of living for all Albertans - all are good reasons why Premier Klein should keep his promise that "the only way taxes are going is down."