EDMONTON - The Canadian Taxpayers Federation today sounded the alarm bells in response to the introduction of a new tax on milk jugs engineered by the Alberta Government.

The Federation said that a new milk jug recycling program amounts to "taxation by stealth" because the tax raised for the recycling program will be built into the price of the milk. "Most consumers won't even be aware that they are paying an additional tax," said Alberta Director Mitchel Gray. "The government is trying to do yet another end-run around the provinces' taxpayers."

Gray pointed out that the new program is consistent with the Alberta government's policy of reducing visible taxes while at the same time increasing hidden taxes. "The government now raises over $1.3 billion through hundreds of user fees," said Gray. This new tax is estimated to put another $800,000 in stealth taxes on taxpayers' shoulders."

"It's also a regressive tax," said Gray, adding that low income Albertans, particularly those with families, will end up paying a significant share of the tax. "The more kids you've got, the more milk they drink and the more tax you'll pay - regardless of your income. It may not seem like a lot of money to some, but if you're on a small fixed income every dollar counts."

The Federation is also skeptical about the ability of the tax to achieve the government's recycle target rate of seventy-five percent for plastic milk containers. "The tax is merely a subsidy for other governments - there is no incentive here for individual Albertans to turn in more milk jugs," said Gray.

The Federation called on the government to come up with an alternative recycling program that doesn't raise taxes. "It seems as though every time politicians come up with a plan to preserve the environment it involves more taxes," said Gray. "The time has come to find non-taxing solutions."

"It's hard to believe that the province has the audacity to call this tax a voluntary program. There's nothing voluntary about it - you buy milk, you pay the tax, end of story."