March 19, 2004 will mark the second anniversary of a provincial budget which raised Albertans' taxes by $641 million per year. This tax increase came just 14 months after Premier Klein made an unequivocal pre-election promise in 2001 that "the only way taxes are going is down."

Will Premier Klein reverse the tax increases he imposed in 2002

The answer to that question depends entirely on whether Alberta politicians are willing to start controlling their spending.

Alberta's spending on government programs has risen 70% in just seven years, compared to a 14% population increase during the same period. In 1996-97, Alberta's politicians spent $12.7 billion tax dollars on health care, education, infrastructure and other government programs. In this current 2003-04 year, politicians are spending $21.6 billion of our money - an increase of 70%.

How many Albertans have enjoyed a 70% increase in their family budget since 1996 If we've managed to pay our bills and meet our needs without this kind of increase in our income, why should politicians be exempt from limits on their urge to spend our money Most people would like to have more money to spend on themselves, their families, and their charities, but reality forces us to make tough choices and say "no" to lower priorities. Why should politicians not have to live within this same reality

Taxpayers will know that politicians are serious about controlling spending when politicians pass a law to control spending.

It was no different twenty years ago, when politicians of all stripes were pushing Canada, as well as every Canadian province, further and further into debt. Most politicians agreed that it was wrong to spend more money than what they took in. But in spite of uttering friendly platitudes, politicians ran deficits year after year, piling on more debt.

But things finally changed in the 1990s, when eight provinces - including Alberta - passed laws that made deficits illegal. Alberta even went a step further, and legislated a schedule for debt repayment. Then taxpayers knew that politicians were serious about balancing budgets.

Balanced budget laws were a huge victory for taxpayers, because they stopped debt from getting bigger. Today Albertans lose less than 3% of their provincial tax dollars to debt servicing costs, compared to 12% in 1994. Controlling debt also benefits future generations of taxpayers, because debt is simply deferred taxation imposed on people who are too young to vote.

Out-of-control spending in 2003 is like the accumulation of debt in the 1980s. In both cases, most politicians agree that there is a problem, and that it should be addressed. But until good intentions turn into good laws, bad practices will continue.

A recent study on Tax and Expenditure Limitations (www.fraserinstitute.ca) looks at the experience of 27 American states which have laws that specifically target growth in government spending and taxes. Unlike studies which have examined state budgets for only two or three years, this study considers taxation and spending over longer time periods, and concludes they are effective in constraining the growth of government and reducing taxes.

Premier Klein has many models to choose from. But until Alberta passes spending control legislation, the 2002 tax increases will likely stay in place.