EDMONTON: The Canadian Taxpayers Federation (CTF) is calling on the Alberta government to make this year's one-time prosperity rebate into a full-time Alberta health care premium refund.

"The Alberta government might want to refer to it as a "prosperity rebate", but when they take $528 out of your left pocket for health care premiums and put $400 into your right pocket as a "prosperity rebate", you are left with a net loss of $128, so in essence this "prosperity rebate" is simply a partial health care premium refund," said CTF-Alberta director Scott Hennig.

Eliminating health care premiums would save taxpayers $884 million each year and would save additional millions if the government scaled back their health care premium collection bureaucracy.

"Sending out a partial health care premium refund in the form of a cheque to each man, woman and child is not going to be easy or cheap, eliminating health care premiums altogether would be much more prudent in the long-run," stated Hennig.

"While we support the intent to put more money back in the pockets of taxpayers, these prosperity rebates are short-term, Albertans want long-term prosperity," concluded Hennig.

Health care premiums only make up 3% of all government revenues. Currently, health care premiums go into general revenues, but if they were directed to Alberta Health and Wellness they would only cover 10% of the cost of Albertans health care.

Furthermore, health care premiums are a regressive form of taxation. For a family earning $35,000 a year, the $1,056 in health care premiums is equivalent to 3% of their annual income. For a family earning $100,000 a year, the $1,056 in health care premiums is equivalent to 1% of their annual income.