EDMONTON: The Alberta Government's plan to reduce taxes should be accelerated in light of a projected $1.5 billion surplus, the Canadian Taxpayers Federation (CTF) said today.

The Federation was responding to reports that rising oil prices could put an extra $1.5 billion into the province's revenues. "If oil prices remain high, the province should be able to give Albertans significant tax relief starting next year," said CTF-Alberta Director Mitchel Gray.

Gray said that an extra $1.5 billion would allow the Klein administration to move the tax cut plan ahead by at least one full year. "We should be able to cut the surtax in half, move to eliminate the province's flat tax, and continue reap the benefits of increased personal exemptions in 2000-2001," remarked Gray.

Gray pointed out that, due to the province's Fiscal Responsibility Act, only three-quarters of a potential $1.5 billion surplus could be used for tax cuts. "Twenty-five percent of the surplus, plus twenty-five percent of the province's economic cushion, would be more than enough to accommodate the $388 million in tax cuts that would result in moving the schedule up one year."

Gray said such an accelerated tax cut would represent an annual saving of approximately $300 per year for each Alberta taxpayer.

The Federation also said the premier and Treasurer Stockwell Day should resist calls for using any 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% for the same term.

"Tax relief is long overdue," said Gray. "We've opened the flood gates to new spending, but we have yet to provide any real relief to cash-strapped taxpayers. Come on Ralph, give us a break."