as MLA compensation rises again this Thursday
EDMONTON: With MLA compensation rising by approximately 2% or 3% on April 1, the Canadian Taxpayers Federation (CTF) today called on Premier Klein's government to follow the examples of British Columbia, Manitoba and Ontario, and make MLA compensation simple and transparent.
Provincial representatives in B.C., Manitoba and Ontario earn a salary which is taxed exactly the same way as the salaries of people who are not elected, without an added "tax-free allowance" or extravagant severance-pay packages.
A B.C. MLA earns $72,300 and pays the same tax on that salary as someone in B.C. who earns $72,300 and who is not an MLA. A Manitoba MLA earns $63,550 and pays the same tax on that salary as someone in Manitoba who earns $63,550 and who is not an MLA. A Member of Provincial Parliament (MPP) in Ontario earns $85,240 and pays the same tax as other Ontarians earning $85,240.
In contrast, Alberta MLAs receive:
- A salary of $43,152, plus
- A tax-free allowance of $21,576 (of which the real value is $29,247), plus
- An RSP allowance of $7,750, plus
- Severance pay of three months' salary for every year in office: $18,120 per year
- Total: $98,269 per year ($43,152 + $29,247 + $7,750 + $18,120)
When MLAs' severance pay, RSP allowances and tax-free allowances are included with their salaries, the after-tax income of Alberta MLAs is the same as the after-tax income of Albertans earning $98,269 per year but without any pension plan, severance pay, or RSP contribution made on their behalf.
"The CTF fully supports the current process of MLAs getting an annual raise based on the average weekly earnings index as calculated by Statistics Canada," stated CTF Alberta-director John Carpay.
"Alberta taxpayers deserve transparency. The after-tax income of MLAs is close to the after-tax income of an Albertan who earns $98,000 per year but has no pension plan, will get zero severance pay when he leaves his job, and has no RSP contribution made on his behalf," explained Carpay.
"Alberta should pay its MLAs one straight simple salary, for the sake of transparency and accountability," concluded Carpay.