Dear Editor,
Unlike Peter Lougheed, Alison Redford will not leave a legacy for Albertans.
Peter Lougheed said in 2011 that Alberta should raise taxes to avoid debt.
Alberta is in more serious financial trouble than ever but the Redford government refuses to consider any tax increases.
It has been 26 years since taxes rose in Alberta only to be reduced shortly after. Ralph Klein’s 10 per cent flat tax of 2001 reduced tax revenue by $1.5 billion in that year alone. According to the Parkland Institute, it is estimated that today a modest progressive income tax could raise $5 billion. Flat taxes are a rarity in the world. Alberta is the only province with one. Even Warren Buffet supports progressive taxation. He is quoted as asking why should he pay the same rate of taxation as his secretary.
Alberta needs a secure source of income other than relying on the ups and downs of bitumen prices. Our population is growing rapidly requiring more spending on education, healthcare, social problems, and infrastructure.
We have maintained our sales tax free status by raiding our Heritage Fund and now our Sustainability Fund. Now we are projected to run a huge deficit. The per capita market value of our Heritage Fund has declined from $1,162 in 1976 to $1,087 in 2010. The OECD has criticized Alberta for drawing down the Sustainability Fund from $16.8 billion in 2010 to $2.3 billion today.
A five per cent sales tax may be the best answer to increasing revenue.
A tax at this rate could generate approximately $5 billion per year. Like a progressive tax, it would be fairer. The more you buy the more you pay in tax. Unlike income tax the consumer would have more control over his or her money.
Increasing SIN taxes could also raise revenue. Those who cost our economy billions of dollars by smoking, gambling, drinking, eating junk food, etc. should help alleviate the costs. Remember, Ed Stelmach increased the liquor tax for a few short days and then changed his mind — strange!
Why not a two per cent increase in corporation taxes? Bring back our medicare premiums. What about increased fuel taxes or a carbon tax? And, our portion of oil revenues has declined from 40 per cent under Peter Lougheed to nine per cent today.
Most Albertans can afford to pay more taxes. Alberta is the richest province in Canada. Alberta has the highest GDP per capita and the highest disposable income per capita in Canada.
Alberta needs a stable and reliable source of revenue and that will not be found in bitumen.
Premier Redford will have my vote if her government reforms Alberta’s tax system, sets funds aside for future generations, and adequately funds our present needs to acceptable standards. Raising taxes does not mean our government should spend carelessly. Cost cutting and prudent spending are still virtues. Premier Redford still has time to establish her legacy.
Ray Kowalski,
Sylvan Lake