EDMONTON: The Canadian Taxpayers Federation (CTF) today rebuked the Alberta Government for failing to offer any immediate tax cuts in light of the province's $2 billion surplus.

"Albertans really have to question the resolve of their government to cut taxes," said CTF Alberta Director Mitchel Gray. "They talk the tax cut talk, but they have yet to walk the tax cut walk. They seem to be charting a new course with fiscal responsibility taking a back seat to increased spending."

The Federation said that the province should have pledged to accelerate its tax cut schedule by eliminating both the flat tax and the surtax charged through the income tax system. "This year's available surplus would allow us to make an immediate broad based tax cut for all Albertans, low income and high income alike," said Gray.

Gray stated that the flat tax and the surtax should be the first to go because they were both introduced as temporary taxes for the specific purpose of eliminating the provincial deficit. "We're being forced to pay for something that no longer exists - how much sense does that make "

The Federation also said that the government should have resisted calls for using the surplus for increased spending. Gray noted that the province has already committed to increase spending on health by 21% over the next three years and to increase spending on education by 19% over the same term.

"Increases in spending have already been budgeted for", said Gray. "The province has commenced a new spending plan that will add another $1.7 billion for programs. An additional spending increase of $260 million, over and above that already budgeted for, comes at the expense of taxpayers."

Gray said that today's surplus announcement indicates that the province is committed to an ever larger government. "The current ratio of $4 in new spending to every $1 in tax cuts will ensure that Albertans continue to pay more in tax each year than they put out for food clothing and shelter. Tax cuts deserve a higher priority."