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More tax increases won't improve Alberta's health care system

Author: John Carpay 2004/06/19
The Alberta Government will spend an extra $700 million on health care, in addition to the $630 million increase over last year. This means that total spending on the government's health care monopoly is rising by 18% in just one year, from $7.4 billion in 2003-04 to $8.7 billion in 2004-05.

The rising costs of the government's health care monopoly are, predictably, leading to talk of more tax increases. Albertans suffered their first round of tax increases in March of 2002, when Premier Klein raised the health care premium tax to $1,056 per year for Alberta families, and $528 per year for individuals. This money doesn't pay for health care any more or any less than other provincial taxes, like income tax, fuel tax, property tax, etc. Worse, this "health care premium" tax gives Albertans a false impression about how much health care really costs.

But Premier Klein's tax increases of 2002 might not be the last ones inflicted on Albertans in the name of health care. The Graydon Report recommends that the Alberta Government consider:


  • giving Regional Health Authorities more taxing powers
  • increasing the health care premium tax
  • increasing personal income tax
  • introducing a "health care deductible" to be capped at 1.5% of taxable income


Throwing more tax dollars at a government monopoly is not the way to better health care. The problem is the Canada Health Act, which prevents provinces from innovating better health care policies. And this in spite of the fact that Canada's Constitution gives provinces exclusive jurisdiction over hospitals, and in spite of the fact that provinces - not Ottawa - pay most of the health care costs.

Further, the Canada Health Act's principles do not include quality, choice, accountability and sustainability. As a result, Canadians die on waiting lists in a health care system which ranks a mere 30th place, according to the World Health Organization (WHO).

France, Germany, Singapore, Australia and other countries with better health care than Canada have a parallel private system which co-exists alongside the public system. Does that mean that some people receive better health care than others Yes, absolutely. And what, pray tell, is wrong with that People who have more money are able to purchase better food, clothing, housing, transportation, legal services and holidays for themselves. Why should people be denied the right to spend more of their own money to buy better health care for themselves As long as everyone enjoys basic food, housing and health care, why is it wrong for some to enjoy better food, housing and health care

Today's government monopoly on health care prevents people from spending their own money on more health care or better health care for themselves. Only those who are wealthy enough to purchase health care abroad - and a plane ticket to get there - can escape this reality. Everyone else runs the risk of finding themselves on a waiting list, living in continuous pain and possibly dying.

Unless Alberta taxpayers speak up in the months ahead, Premier Klein will likely tear a page from Ontario Premier Dalton McGuinty's budget, and hike taxes in order to throw even more money at the government's health care monopoly.

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Franco Terrazzano
Federal Director at
Canadian Taxpayers
Federation

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