Will Premier Klein keep his promise to taxpayers
Author:
John Carpay
2002/01/31
"The only way taxes are going in this province is down," promised Premier Klein before his 2001 re-election. But now Klein claims that increasing health care premiums is a "no-brainer."
Both Klein and Health Minister Gary Mar said last week that health care premiums would go up as much as 40%. For a family, that would mean paying $1142 per year instead of the current $816 per year. Individuals would pay $571 per year instead of $408.
Health care premiums are a tax because they are mandatory, not voluntary. The government takes money (a levy, premium, tax or fee) from people who have earned it, and the government spends that money. Those who claim health care premiums are not a tax should try not paying, and see what happens. Eventually - it may take a few years - the government will seize your car, put a lien on your property, and take other enforcement measures, as with any other unpaid taxes.
It's a myth that "health care premiums pay for health care." In fact, health care premiums go into general revenues, just like taxes on income, business, property, fuel, alcohol, tobacco, VLTs, etc. Albertans pay $670 million in health care premiums into general revenues, out of which the government then funds the $6.4 billion health budget.
Raising premiums would break a clear promise. Raising premiums would also defeat the whole purpose of the Mazankowski report. The Premier's Advisory Council on Health was created in August of 2000 to look at ways to improve the health care system - not throw more money at it.
More tax dollars is the last thing this high-spending government needs. Alberta's spending on programs, per person, is 21% higher than the Canadian provincial average. The Alberta government is swimming in taxpayers' money, and doesn't need another penny.
If health care premiums were channeled into medical savings accounts, and if increases to premiums were matched dollar-for-dollar with cuts to personal income tax or other taxes, we would be moving towards greater efficiency and accountability. But increasing taxes does nothing to improve the health care system. It's a shame that the good recommendations in the Mazankowski report are being used as a smoke screen for a tax grab, to pay for Klein's massive spending increases in the past five years.
Premier Klein has three choices. He can honour his promise to taxpayers by keeping health care premiums at their current levels. Or he can honour his promise by increasing health care premiums and cutting personal income tax by the same amount. Or he can break his promise to Albertans by raising premiums without cutting personal income tax.
The Canadian Taxpayers Federation has launched a petition campaign calling on Premier Klein to honour his promise that "the only way taxes are going in this province is down." Signed petitions will be presented to Premier Klein when the Legislature reconvenes on February 26. If you want to sign or distribute the petition, call our Edmonton office at 448-0159, or print the petition off the CTF web site at www.taxpayer.com under "get involved."