Thanks Mr. Klein: Alberta's prosperity is no accident
Author:
John Carpay
2005/01/16
Occasionally, Tory MLAs and Ministers tell me I'm too negative, not recognizing the good things which Premier Klein's government has accomplished. In years past, the Canadian Taxpayers Federation (CTF) has praised Premier Klein loudly, publicly and unequivocally.
The CTF recognizes that Alberta's economic success is no accident. During his first term from 1993 to 1997, Premier Klein reduced spending on government programs by 30% in real terms, taking Alberta's population growth and inflation into account. From 1994 to 2004, over $20 billion in debt was repaid. Debt servicing costs once consumed 12% of provincial tax revenues. But in Budget 2005-06, 100% of provincial tax revenues will be available for roads, bridges, policing, schools, hospitals, etc.
In 2001, Albertans' personal income tax burden was reduced by 25%. The new 10% single-rate personal income tax system, with generous personal and spousal exemptions, is the most family-friendly in Canada. No other province can claim that an individual pays no provincial income tax on the first $14,526 of earnings, or that a family pays nothing on its first $29,052 of earnings.
The general corporate income tax rate has been cut from 15.5% to 11.5%,
and the small business rate from 6% to 3%. Reducing business tax rates helps all Albertans because, at the end of the day, taxes are always paid by people, as consumers or employees or investors. Alberta's low corporate taxes attract investment and new businesses, which create jobs for Albertans. Since the best social program is a job, Alberta's thriving economy produces far more wealth to help disadvantaged people than do the weaker economies of other provinces with higher taxes.
Premier Klein's government - along with previous Tory and Social Credit governments - can also take credit for pro-business and pro-development policies which allow Albertans to benefit from our natural resources. Albertans aren't "lucky," as some would have you believe. Rather, we've chosen to develop the gifts which the earth has given us. Saskatchewan, B.C. and numerous jurisdictions throughout the world have also been blessed with abundant natural resources. But people don't prosper when anti-business regimes implement policies which repel investment, deter business, and prevent job creation.
The Alberta government's involvement in business - also known as corporate welfare - has been ended for the most part. This is good news for taxpayers, because when it comes
to corporate welfare, government lacks the ability to pick winners, but losers always know how to pick government.
Alberta's school boards can't raise property taxes without taxpayers' consent in a referendum. This puts the onus on politicians to explain and justify why a tax increase is necessary. Without this taxpayer protection legislation, the onus is on taxpayers to explain and justify why they should be able to keep their own earnings. Taxpayer protection legislation doesn't exist yet at the federal, provincial and municipal levels, but having it for school boards is a good start.
Thanks to liquor privatization, Albertans enjoy more choice and better prices, without long line-ups.
When revenues from oil and gas are taken out of the equation, Alberta's provincial taxes are the lowest in Canada. In short, Alberta's economy is doing well, and Albertans are enjoying unprecedented prosperity, thanks to the policies of Premier Klein's government. Past policies have been deservedly praised by taxpayers. Taxpayer-friendly policies in the future will also receive the praise they deserve.