Quote:
Originally Posted by troutman
No sales tax, no inheritance tax, low property transfer tax, etc.
We have been under-taxed for far too long - that is why we have a revenue/service/deficit problem.
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Ignoring the fact that there is a lot of bloated spending in government, and that government pensions are a massive cost, I think the issue is that the federal taxes are too high relative to the services provided, and in order to be competitive relative to the US, Alberta has had to keep their taxes relatively low to attract people and businesses. The situation has changed somewhat, but Alberta's need to be cheaper and more attractive to distinguish itself from people preferring other states and provinces with bigger markets, established industries and access to labour isn't going anywhere either.
There are already federal sales taxes, death taxes (deemed disposition), increased tax on trusts arising from estates, property transfer tax (non-principal residence), etc. that residents of Alberta already pay. The issue is, because of the equalization system, that federal tax doesn't return to Alberta. In essence, Alberta is therefore being asked to either raise tax and be less attractive and viable, or keep tax low and hope that other revenue streams make up, or that the tax base continues to grow. Neither are ideal.
The fairy tale solution is the reduction of the equalization system, and a global reduction in federal tax, allowing the provincial taxes (which actually are responsible for healthcare, education, roads, universities, and most electoral issues) to be increased without significantly increasing the combined tax burdens. It'll never happen because the federal government uses its power of taxation to dictate to the provinces on provincial matters like healthcare.