Alberta Soap Box 🇨🇦

Comments Effecting Canadian Events – Ken McGregor

Is a PST a Fair Tax for Albertans?

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Talking about introducing an Alberta sales tax is like taking a poison pill for Albertans. The cry for tax the rich is far more popular and gets a lot more votes and headline traction than any thought of a fair tax for all. The Alberta PC government also says that the Alberta tax system is fair for all, but is it?

In Alberta’s fiscal tax plan for 2012 it turns out that the bottom 50% of Alberta’s earners only pay 3% of the tax burden. Basically nothing, tax free. It also says a 2 earner family can earn up to $46,000 before paying a dime of tax. In essence 1/2 of Alberta earners contribute not a Pennie to growing Alberta, the health care system or education. It’s all left up to the top 50% of which the top 10% pay 54% of all Alberta income tax and the middle earners pay 43%. The question is how much more can the PC government squeeze out of the top 50% to pay for its ever-increasing expense of health care and education etc. With all 3 levels of government continually increasing taxes, and an average Canadian tax bill of over 40%, the earners paying tax are getting maxed out. It’s clear that Alberta can’t just rely on 1/2 of its earners to foot the bill. All Alberta earners are going to have to chip a little something into the pot to pay the expenses.

One way to do this is through a PST (Provincial Sales Tax) instead of increasing the Alberta Income Tax. Buy introducing a PST, 100% of Alberta earners would pay something towards our expenses. Unlike Alberta’s Liberal leader Raj Sherman’s suggestion to increase tax on the top 10% of earners (a popular vote getter) who already pay a huge part of the tax burden, a PST will put the bill on everyone’s shoulders. Those who pay nothing today will soon realize the free benefits they are getting is not free. Someone else is paying for it. The Federal government stats also show that the top 10% earners that pay federal income tax pay 71% of the total tax bill and the bottom 50% only pay 2% ,contrary to the vote getting myth the rich don’t pay their fair share.

If we want enterprising people to come to Alberta we have to acknowledge their contribution instead of spreading rumors they don’t pay their fair share of tax and are just ripping off the little guy.

All Albertans should share in the cost of building Alberta and can do so by the way of a PST. The middle class is shrinking and the top 10% can’t support the rest of us much more than they already are. In fact they may just look elsewhere to invest their dollars and talent if they get squeezed much more.

Source info:

Alberta’s tax share (page 99) http://www.finance.alberta.ca/publications/budget/budget2012/fiscal-plan-tax-plan.pdf

Federal Tax Share http://www.heritage.org/federalbudget/top10-percent-income-earners

Please comment below or e-mail  me at ALBERTASOAPBOX@yahoo.ca

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