With Premier Prentice’s latest Provincial Sales Tax (PST) trial balloon all but deflated, it’s becoming apparent that our new premier is trying to get Albertans warm to the idea of hiking income taxes.

To justify the hit on Albertans’ paycheques, Prentice told a CBC interviewer that Alberta’s current flat tax system hurts the working poor. Prentice told the CBC that it “bites them pretty hard compared to the rest of the country."

Unfortunately, there are so many myths about the provincial tax system, so here are the top five fibs about Alberta’s flat tax.

Fib One: Alberta’s single rate system is a flat tax.

Wrong. A true flat tax would make people pay tax on their first dollar earned. That isn’t how the system works. Albertans don’t pay provincial income tax until they earn over $17,787. That’s why Alberta’s system is called a “single rate.”

But even that’s a myth. Albertans have two tax rates: Zero on everything under $17,787 and ten per cent on income above that. It’s a great deal and shouldn’t change.

That leads to Fib Two, which Prentice offered up: Alberta’s tax system hurts the working poor.

No it doesn’t. Poor Quebecois start paying income tax at $11,305; poor Ontarians pay provincial income tax starting at $9,670 (their basic provincial exemption); and the poor in Prince Edward Island start paying income tax on their meagre salaries at $7,708.

Alberta shields the poor in this province from paying taxes on $10,000 more income than does PEI. That helps and doesn’t hurt the working poor.

Fib Three: Alberta’s tax system is not progressive.

This is another false claim from Premier Jim Prentice. And guess who disagrees with him? His own Finance department.

In the last provincial budget, on page 120, Finance officials wrote of how Alberta “has a very progressive tax system that compares well with other provinces.”

Why does Alberta Finance disagree with Alberta’s premier? Because the existence of sales and health care taxes in other provinces means low-income taxpayers pay more to their governments.

In Ontario and British Columbia, the poorest taxpayers (the bottom one-quarter) pay 5.8% and 5.9% of all taxes collected in those provinces. Low-income Albertans cough up just 2.9% of all taxes here—half that of what the poor pay in those other provinces.

Fib Four: The rich don’t pay their fair share in Alberta.

Wrong again. The top one-quarter of income earners pay 63.1% of all provincial taxes in Alberta. The rich pay a smaller share in Ontario (59.7%), in Saskatchewan (58.5%) and in British Columbia (55.6%).

Fib Five: Alberta needs new and higher taxes.

This fib is not really about the single tax. It’s a general fib told about government budgets in Alberta.

Alberta’s per person spending has soared way above population growth and inflation from about the time Ralph Klein left office. Last year, the Alberta government spent 21 per cent more on programs than neighbouring British Columbia spent.

Alberta’s government should reform government pensions and salaries, and stretch the current three-year capital plan over five years.

The Canadian Taxpayers Federation has a personal stake in this debate over taxes and “flat” taxes. Back in 1998, then Alberta Director for the Canadian Taxpayers Federation Mark Milke appeared before the Alberta Tax Review Committee and recommended a single tax for Albertans.

The Ralph Klein government adopted a single tax rate and eliminated Alberta’s debt. Those were two significant accomplishments.

Too bad the premiers after Klein, including the current one, seem intent on messing up Klein’s legacy to Albertans.