- Premier Stelmach on right track to eliminate heath care premiums for all Albertans

EDMONTON: The Canadian Taxpayers Federation (CTF) reacted today to news Premier Ed Stelmach is considering eliminating Alberta's regressive health care premium tax.

"It's taken long enough, but we're pleased to hear the premier is coming around on eliminating the health care premium tax," said CTF-Alberta director Scott Hennig.

"The CTF has long argued health care premiums should be eliminated, based on the fact that they are costly, regressive, and have no relation to the cost or usage of heath services," continued Hennig.

For a family earning $35,000 per year, the $1,056 they pay in health care premiums is equivalent to 3 percent of their annual family income. For a family earning $100,000 the $1,056 premium tax is equivalent to 1 percent of their annual family income.

The health care premium costs $12.7-million per year to administer and collect, with 40 per cent of it ($4.5-million in 2005-06) going to pay private collection agencies.

"Premier Stelmach needs to do something to help improve his image as a friend of the taxpayer, and cutting this tax would be a good first step," stated Hennig.

"In his first year, Premier Stelmach passed a budget containing no tax relief, hiked spending by 17 percent, signed a deal that will see taxpayers foot a $2.2-billion bill for the teachers' portion of the unfunded liability in their pension plan, and still hasn't decided whether to give municipalities new taxing powers," said Hennig. "Clearly, Premier Stelmach has a long way to go to convince taxpayers he's on their side."

Since 2003, the CTF has delivered petitions containing 9,000 names to the Alberta government calling for the elimination of health care premiums. The petition can be downloaded or signed on-line HERE.