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Bunk · 11-21-2014, 10:32 AM

Two things that relate to the question of whether to end the flat tax in Alberta:

First is the simple reality of our tax revenues. We rely very heavily on royalties to pay for the basic operations of our province. Downward fluctuationsin oil/gas prices, as we see now, leave a budget deficit. Likely, we will need more taxation revenue, if oil prices stay below government projections.

Failing oil prices put pressure on Alberta to rethink income flat tax

BY MARIAM IBRAHIM, EDMONTON JOURNAL NOVEMBER 19, 2014

http://www.edmontonjournal.com/news/...608/story.html

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Second is the startling revelation that income inequality in Alberta is more pronounced than even the United States. The top 10% of earners here have over 50% of personal wealth. We're the only province without a progressive tax rate.

Alberta Income Inequality Is Worse Than In The U.S.

The Huffington Post Alberta | By Michelle Butterfield

http://www.huffingtonpost.ca/2014/11...n_6186066.html

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How should Alberta respond?

We can likely make some reasonable cuts and find efficiencies, but we all know that will come nowhere close to closing potentially a multi-billion dollar gap. On the spending side, this could only be closed with massive and deep cuts.

So, that leaves the revenue side. That we continue to fund the operating budget with oil and gas royalties astounds me as very irresponsible and short-sited. One obvious choice seems to be changing our tax structure and end the flat tax - a higher rate for wealthy, and perhaps marginally lower rates for lower income households. This would also help level out our increasing income inequality.

Discuss.

11-21-2014, 10:32 AM	#1
Bunk Franchise Player Join Date: Jul 2006 Exp:	The flat tax Two things that relate to the question of whether to end the flat tax in Alberta: First is the simple reality of our tax revenues. We rely very heavily on royalties to pay for the basic operations of our province. Downward fluctuationsin oil/gas prices, as we see now, leave a budget deficit. Likely, we will need more taxation revenue, if oil prices stay below government projections. Failing oil prices put pressure on Alberta to rethink income flat tax BY MARIAM IBRAHIM, EDMONTON JOURNAL NOVEMBER 19, 2014 http://www.edmontonjournal.com/news/...608/story.html --- Second is the startling revelation that income inequality in Alberta is more pronounced than even the United States. The top 10% of earners here have over 50% of personal wealth. We're the only province without a progressive tax rate. Alberta Income Inequality Is Worse Than In The U.S. The Huffington Post Alberta \| By Michelle Butterfield http://www.huffingtonpost.ca/2014/11...n_6186066.html --- How should Alberta respond? We can likely make some reasonable cuts and find efficiencies, but we all know that will come nowhere close to closing potentially a multi-billion dollar gap. On the spending side, this could only be closed with massive and deep cuts. So, that leaves the revenue side. That we continue to fund the operating budget with oil and gas royalties astounds me as very irresponsible and short-sited. One obvious choice seems to be changing our tax structure and end the flat tax - a higher rate for wealthy, and perhaps marginally lower rates for lower income households. This would also help level out our increasing income inequality. Discuss. __________________ Trust the snake.