Tax hikes not necessary at all
EDMONTON: The Canadian Taxpayers Federation (CTF) has renewed its call on the Klein government to pass spending control legislation, to index growth in government spending to inflation plus population growth. The state of Washington has had this kind of legislation in place since 1995, allowing for steady, reliable growth in government spending while still protecting taxpayers.
Based on inflation and population growth figures from Statistics Canada, and projections for 2002, Alberta's population from 1996 to 2002 increases 12%, from 2,781,000 to 3,126,000. Inflation is 16% over this period. But Alberta's spending on government programs (excluding debt servicing costs) is up 45%, from $12.768 billion in 1996-97 to $18.571 in 2002-03.
On January 29, 2001, Premier Klein promised Albertans in a televised address that "the only way taxes are going in this province is down." But yesterday's budget included tax increases of $722 million, with only $81 million in tax cuts for businesses.
CTF-Alberta director John Carpay stated, "If spending control legislation had been implemented in 1996, 1997 or 1998, this budget would have had tax cuts instead of tax increases. Alberta would also be debt-free or very close to debt-free, not paying $585 million in debt servicing costs this year."
"This budget shows the government failed to focus its spending on priorities, and said 'yes' to spending demands too often," added Carpay.
Based on inflation and population growth figures from Statistics Canada, and projections for 2002, Alberta's population from 1996 to 2002 increases 12%, from 2,781,000 to 3,126,000. Inflation is 16% over this period. But Alberta's spending on government programs (excluding debt servicing costs) is up 45%, from $12.768 billion in 1996-97 to $18.571 in 2002-03.
On January 29, 2001, Premier Klein promised Albertans in a televised address that "the only way taxes are going in this province is down." But yesterday's budget included tax increases of $722 million, with only $81 million in tax cuts for businesses.
CTF-Alberta director John Carpay stated, "If spending control legislation had been implemented in 1996, 1997 or 1998, this budget would have had tax cuts instead of tax increases. Alberta would also be debt-free or very close to debt-free, not paying $585 million in debt servicing costs this year."
"This budget shows the government failed to focus its spending on priorities, and said 'yes' to spending demands too often," added Carpay.