Three years ago, just prior to the 2001 election, Premier Klein promised us that "The only way taxes are going in this province is down."

That promise was broken in March of 2002, when Premier Klein increased various taxes and fees, including an increase in the health care premium tax to $1,056 per year, per Alberta family. The $541 million tax increase of 2002 was partly reversed by small reductions to corporate tax rates in 2003 and again in Budget 2004-05. Still, more than half of the tax increases of 2002 remain in place, and Premier Klein's promise remains broken.

A government that is swimming in taxpayers' money can easily let Albertans keep more of their earnings. In the 2003-04 fiscal year, the Alberta government is taking in over $25 billion in revenues - about $8,000 for every man, woman and child in Alberta. Revenues for 2004-05 are projected at $23 billion, but will likely be higher.

The temptation to spend proved too powerful for our 83 MLAs, most of whom seem to forget that every penny they spend was first taken - it wasn't a voluntary donation - out of Albertans' wallets. Resisting temptation becomes even harder with two Opposition parties whose policies and entire philosophy can be summarized in two words: "spend more!"

Our so-called "Conservatives" have increased spending on a scale that would make a federal Liberal blush. While Ottawa's spending on federal programs has risen 40% since 1996, Premier Klein's Tories have increased spending on government programs by 75% during the same time period, while Alberta's population grew by only 16%.

If program spending in Budget 2004-05 had risen by 5% instead of 10%, we would all start enjoying a billion-dollar tax cut this year. What does a billion-dollar tax cut look like for the average Alberta family It would mean freedom from the $88-per-month health care premium tax, which doesn't pay for health care anyway, but flows into General Revenues like every other tax. Or the province could abolish the provincial property tax entirely. Or cut personal income tax from 10% to 8%.

Instead of tax cuts which would benefit all Albertans - including nurses, teachers, MLAs and doctors - Premier Klein's government has chosen instead to capitulate to unreasonable demands from public sector unions for double-digit wage increases. Of course it was hard for MLAs to resist these demands after they voted themselves a brand new "RSP allowance" and very fat severance pay packages in 2001. MLA compensation is but a fraction of a tiny fraction of the $22.6 billion provincial budget. But the MLAs' loss of moral authority to negotiate with public sector unions has cost taxpayers dearly.

On a positive note, debt servicing costs now eat up only 1.6% of our provincial tax dollars, compared to 12% back in 1994. Premier Klein's track record on debt repayment is excellent, and it corresponds with what Albertans told him in province wide surveys in 1998 and 2000. Called "Talk it up, talk it out" and "It's your money," these surveys were the vehicle by which Albertans told their government that tax cuts were the top priority, and increased spending the third priority. It's time the Alberta government stopped reading the survey results upside-down.