EDMONTON, AB: The Canadian Taxpayers Federation today released the results of a province-wide poll conducted by Abingdon Research showing that Albertans favour the elimination of the gold-plated MLA transition allowances as well as elimination of the tax-free portion of MLA pay in favour of a fully taxable salary.
The public opinion polling, conducted between February 17th and 23rd by Abingdon Research asked 801 Albertans two questions regarding MLA pay.
Of those polled, 51 per cent “strongly” agreed (28 per cent moderately agreed), for a total of 79 per cent agreeing that the MLA severance or transition allowance should be eliminated. Only 7 per cent “strongly” disagreed (12 per cent moderately disagreed).
On the question of the one-third tax-free portion of MLA base pay, 72 per cent “strongly” agreed (13 per cent moderately agreed), for a total of 85 per cent agreeing that MLAs should pay tax on their entire salary. Only 5 per cent “strongly” disagreed (7 per cent moderately disagreed).
“The goal in conducting this poll was to show Premier Redford and Justice Major – who is currently conducting an MLA pay review – just how strongly Albertans feel about gold-plated MLA transition allowances and exempting themselves from income tax,” said CTF-Alberta Director Scott Hennig.
During the Canadian Taxpayers Federation’s presentation to Justice Major on January 23rd regarding the MLA “transition allowance,” Justice Major at one point said “Well I get your point. It’s no surprise I don’t agree with it.”
“It appeared Justice Major might be in favour of retaining some form of, if not the current gold-plated transition allowances for MLAs,” continued Hennig. “If he recommends retaining these outrageous payouts, we want him to know he’s doing so against the wishes of Albertans.”
Justice Major also seemed unconvinced that the additional cost of creating a transparent, fully-taxable MLA salary would be embraced by Albertans. This was evident during his exchange with one presenter, Mr. Cheran Khehra:
Mr. Khehra: Well, I think there is a conflict. One is that from the taxpayers’ point of view we would like the taxpayer to save some amount of money, but in the overall picture I think it is unfair to the citizens. Citizens want a very transparent system.
Justice Major: Even if it costs them money?
Mr. Khehra: Even if it costs money.
Justice Major: Okay. You won’t be popular with the citizens, but that’s fine
“As we pointed out during our presentation, the estimated $1 million it would cost to gross-up MLA pay to eliminate the tax-free portion, could be more than off-set by eliminating the estimated $29.5 million Albertans have already committed to pay in MLA transition allowances,” continued Hennig.
MLAs have to pay tax on their entire salaries in every province in Canada except Alberta and Quebec.
The results also show that PC Party voters feel very strongly about these two issues with 79 per cent and 83 per cent support towards eliminating MLA transition allowances and fully taxing MLA pay, respectively.
“Premier Redford might wish to take note that opposition to both of these MLA perks cross all regional, gender, age and partisan boundaries,” concluded Hennig.
Justice Major is expected to submit his report to the legislature on or around April 1, 2012.
The detailed breakdown of the poll results can be downloaded here: /media/downloadable/CTF%20Alberta%20Survey.pdf
Is Canada Off Track?
Canada has problems. You see them at gas station. You see them at the grocery store. You see them on your taxes.
Is anyone listening to you to find out where you think Canada’s off track and what you think we could do to make things better?
You can tell us what you think by filling out the survey