Stop the Spending and Start the Tax Cuts
Author:
Mitch Gray
2000/01/16
EDMONTON: The Canadian Taxpayers Federation (CTF) today presented its recommendations for the 2000-2001 Alberta Budget to the province's Standing Policy Committee on Finance and Intergovernmental Relations. The Federation's proposals center on legislated spending limits and $500 million in additional tax cuts.
"The time is long past due for meaningful tax relief in this province," said the CTF's Alberta Director Mitchel Gray. "It's absolutely imperative that we rein in spending and start giving Albertans a fiscal dividend."
The Federation pointed out that provincial government spending is out of control. Over the last five years program spending has increased by 29 percent, tripling both inflation and population growth and almost doubling revenues.
"At this rate it's not inconceivable that we could be back in a deficit situation in the near future," said Gray. "Alberta now has the highest per capita program expenditures in the country and our revenues are not keeping pace."
The Federation's proposal contains amendments to the province's Fiscal Responsibility Act that would index spending increases to inflation and population growth. The amendments also provide for financial penalties for MLAs and cabinet ministers who run deficits or break spending limits.
"The only way to ensure fiscal accountability is to hit these politicians where it hurts - in their wallets," said Gray. "We should be docking the pay of those politicians who can't live within our means."
The CTF also proposed cutting taxes by a further $500 million above and beyond previously announced reductions. "A $500 million tax reduction is well within reach and long overdue." Gray said that a $500 million tax cut would save the average Alberta taxpayer approximately $375 next year.
"Ideally we'd like to see the province reduce the new single personal income tax rate from 11% to 10% to achieve our proposed tax savings," said Gray. Albertans have said that personal income tax reductions are their number one priority. It's time the government started listening.