Ever heard that saying: “you’re damned if you do, and you’re damned if you don’t?” Well that’s exactly how I felt before attending Premier Redford’s recent economic summit.
I was hoping for a positive discussion on how we might address Alberta’s economic future. Unfortunately, the Premier stacked the panels and the result was a discussion weighted heavily in favour of levying unfair taxes on hardworking Alberta families. Don’t get me wrong, there were some expert panellists, with impressive qualifications, but it was clear that a real discussion on this provinces out of control spending, and how we might rein it in, was not forthcoming.
In fact, most of the Premier’s handpicked panelists favoured dismantling the Alberta Advantage by bringing in a provincial sales tax. As you know, Alberta is the only province without a PST. It is a sign of our achievement and economic success. We have not only survived without one, we have excelled. Well that all appears to be history with this government. Now the Premier has embarked on an extended, likely years-long campaign to build support for this punitive and unnecessary tax.
I’m surprised the Premier gave a platform to so many PST cheerleaders considering she is regarded by many as liberal-leaning. Consumption taxes hit low income people the hardest. For instance, for someone with a low annual income, a five to eight per cent tax at the till will certainly cause problems. A PST would hit all Albertans with an instant means of raising funds for an overspending government. Imagine, more of your money for the government to spend!
Some other options talked about at the summit were to increase income or corporate taxes. Again, it is my belief and the Wildrose party’s that raising these taxes would hurt the economy and chase business out of the province. Alberta’s competitive advantage has always been a low tax environment, which encourages economic growth and creates jobs, thus bringing in more people who pay taxes and increase provincial revenues.
It seems to me (and many others) that this current PC government has lost touch with Albertans. It is clearly addicted to spending. Reaching into your pocket for more is not a solution. It’s time for the government to put forward a positive vision for the province by balancing the books responsibly – without hurting the economy.
Let me clear up something else that the Premier is hoping you won’t look into. Have you heard of the so called “bitumen bubble?” That’s the difference between the price of oil on the world markets (that’s West Texas Intermediate) and the price of our oil, (Western Canada Select) which we sell at a discount because it is heavier oil. Well the Premier and our finance minister say that’s the reason we’re staring at yet another massive deficit in Alberta.
Here’s what they’re not telling you: The differential was nearly the same when they passed the 2012-2013 budget as it is today. On February 9, 2012, the difference between WTI and Alberta oil was $34.20. On January 24, 2013 – when the Premier went on television to proclaim the budget crisis – the differential was $37.30., a mere $3 difference. The excuse offered to Albertans during the Premier’s TV address was a complete fabrication of the facts and an insult to anyone with access to Google or a good memory. Do you think for one second that an oil and gas company working here in Alberta would put forth projections and not factor in the differential? Not likely!
We can and should turn things around in Alberta. The PCs need to accept the calls of the Wildrose Official Opposition to end wasteful spending. For starters, they could reverse the eight per cent pay raise they gave themselves at the start of the fall sitting. Next, they could end the practice of corporate welfare through $2 billion for carbon capture and storage, or the $3 billion for oil companies to develop technology via AOSTRA II. There is also the $275 million for luxurious new offices for MLAs. And how about the limitless expense policy for bureaucrats and executives, or their outrageous bonuses and severances?
There are savings to be found, and it’s just plain irresponsible to suggest taxes are the solution. This government needs to do what the rest of us do when tough decisions have to be made. They should go to the mirror and spend within their means. That they refuse to do so shows just how out of touch with Albertans they really are.
