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More silly spending as Throne Speech ignores taxpayers

Author: John Carpay 2004/02/12
Laws to control spending and protect taxpayers are not on the Alberta government's legislative agenda for the Spring Sitting. In fact, the Alberta Government is changing the Fiscal Responsibility Act to scrap the $3.5 billion annual spending limit on revenues from oil and gas. The new "limit" (ha, ha!) will be $4 billion, until the government changes it to a higher "limit" again.

Does it ever occur to Premier Klein and the other 82 MLAs that extra tax dollars could be returned to Albertans

The Alberta government is taking in over $24 billion in revenues this fiscal year - an average of $7,500 from every man, woman and child in Alberta, or $30,000 for a family of four. Alberta's spending on government programs, per person, is the highest in Canada. Yet Premier Klein raised provincial taxes by $641 million in 2002, and those tax hikes have yet to be reversed. While swimming in $24 billion tax dollars, the government continues to slap Alberta families with a tax bill of $1,056 per year called "health care premiums," every penny of which flows into General Revenues.

Premier Klein's severe addiction to spending other people's money will be on display again during this Spring Session of the Legislature.

New legislation will see $700 of taxpayers' money given to parents of children born in 2005 or later, to be placed in Registered Education Savings Plans (RESPs). Parents are already motivated to save for their children's education. The biggest obstacle to saving is three levels of government which, together, take 49% of Canadians' earnings through income tax, GST, health care premiums, property tax, business taxes, fuel tax, etc. If the Alberta government was really serious about enabling parents to save for their children's education, it would let parents keep more of their own earnings.

But no such luck. While gouging families for $1,056 in health care premium taxes with its left hand, Premier Klein's government uses its right hand to redistribute some of those tax dollars to some families.

Families whose children were born prior to 2005 will not receive tax dollars to put into RESPs. Why not help all Alberta families save an extra $1,056 for their children's education by scrapping the health care premium tax

With Alberta's spending on government programs up 70% in seven years - while Alberta's population grew only 14% - a good Throne Speech would announce spending control legislation. With Alberta's politicians enjoying an unlimited right to raise any tax at any time for any reason - even if it breaks an election promise - a good Throne Speech would announce taxpayer protection legislation to require a province-wide referendum on new taxes and tax increases. With citizens being largely ignored between elections, and with 79% of Albertans wanting the right to initiate and vote in referendums on issues of their choosing, a good Throne Speech would announce citizens' initiative legislation.

If the Throne Speech reflects the Government's legislative agenda - and it usually does - this Spring Sitting will open the door to even higher levels of government spending, rather than helping taxpayers.

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Franco Terrazzano
Federal Director at
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Federation

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