Alberta budget news

[Azure]

Raising the flat tax to one percentage point to 11% would raise almost a billion dollars in additional revenue. Numbers probably aren't entirely accurate, but even at $750 million, going from 10% to 15% would raise an additional $3 billion or so in tax revenue. Cool.

[Azure]

I have a $4 billion dollar surplus with the majority of spending remaining in tact. I also reintroduced health care premiums, but would like them in the form of a $5 dollar use fee everytime you go to the doctor.

Income tax is at 11%, but would like it brought up to 15% over 5 years with 1% increase per year. Most people won't notice it that much.

Sales tax is at 2%, with a slow increase to 5% over 10 years.

I have $8 billion in resource revenue that I want to completely remove from the 'budget.'

IMO, the resource revenue should ALL be put into savings, and taxes should be used to balance the budget. If there is a budget surplus based on excess tax revenue, that money should be directly invested into capital projects throughout the province. Figure out what needs to be built where, and spend it there.

I see NO reason why Alberta can't STILL have low tax rates, and run a surplus year after year.

[Slava]

Originally Posted by Azure

I have a $4 billion dollar surplus with the majority of spending remaining in tact. I also reintroduced health care premiums, but would like them in the form of a $5 dollar use fee everytime you go to the doctor.

Income tax is at 11%, but would like it brought up to 15% over 5 years with 1% increase per year. Most people won't notice it that much.

Sales tax is at 2%, with a slow increase to 5% over 10 years.

I have $8 billion in resource revenue that I want to completely remove from the 'budget.'

IMO, the resource revenue should ALL be put into savings, and taxes should be used to balance the budget. If there is a budget surplus based on excess tax revenue, that money should be directly invested into capital projects throughout the province. Figure out what needs to be built where, and spend it there.

I see NO reason why Alberta can't STILL have low tax rates, and run a surplus year after year.

I largely agree with you. I wrote about how that money light to be invested, away from the politicians, and revenues used to fund our budget years from now. I'm sure politicians wouldn't love it, but the reality is that its a sensible approach to long term planning.

[MarchHare]

I see NO reason why Alberta can't STILL have low tax rates, and run a surplus year after year.

You're absolutely right, of course, but the reason we can't have that is because too many Albertans have a short-term view when it comes to resource royalties and taxation policy, making true fiscal responsibility politically impossible. The idea of even a 5% PST is anathema in this province. The premier responsible for introducing it would surely be reviled as much as Pierre Trudeau is.

[Plett25]

100% of resource revenues should go into the Heritage fund and 5% of the fund should go into general revenues.

[Plett25]

Originally Posted by MarchHare

You're absolutely right, of course, but the reason we can't have that is because too many Albertans have a short-term view when it comes to resource royalties and taxation policy, making true fiscal responsibility politically impossible. The idea of even a 5% PST is anathema in this province. The premier responsible for introducing it would surely be reviled as much as Pierre Trudeau is.

I'd like to see a referendum... Redford can be for a 5% sales tax, but has the cover of doing whatever the majority wants.

[Azure]

The Heritage Fund has a return rate of 3%, and at $16 billion generates around $650 million.

I'd rather the fund go to $50 billion, where it should EASILY be already, and use the $1.5 billion from the 3% return, and fund the budget.

[Bend it like Bourgeois]

Originally Posted by Azure

I have a $4 billion dollar surplus with the majority of spending remaining in tact. I also reintroduced health care premiums, but would like them in the form of a $5 dollar use fee everytime you go to the doctor.

Income tax is at 11%, but would like it brought up to 15% over 5 years with 1% increase per year. Most people won't notice it that much.

Sales tax is at 2%, with a slow increase to 5% over 10 years.

People won't notice that tax hike?

For an average family that's probably 500-1000 a month off of their take home pay.

I think we'd all notice.

[yads]

Achieved a $200M surplus with mostly cuts, increasing fuel tax by 4c and implementing a 14% tax on income over $250K. This was with a $68 WCS.

[Azure]

Originally Posted by MarchHare

You're absolutely right, of course, but the reason we can't have that is because too many Albertans have a short-term view when it comes to resource royalties and taxation policy, making true fiscal responsibility politically impossible. The idea of even a 5% PST is anathema in this province. The premier responsible for introducing it would surely be reviled as much as Pierre Trudeau is.

The problem is the feds introduced the GST to 'fix' the budget deficit, and it is still there. Most people don't understand just how effective of a tax it is, and how efficiently it can be dealt with by the business side of things.

We have PST here in Manitoba, and it isn't a problem at all to deal with from the business side of things.

The people I've talked to in Alberta somehow magically think that all the 'oil' is going to fix everything.

If oil goes up to $140 like back in the day, ALL that money should be saved, not spent.

I don't think people trust the PCs, so even if they did a huge educational thing to teach people on how they want to manage the budget, nobody would believe them.

Of course, the other problem is that they believe them more than they believe any other political party.

[Bill Bumface]

I wish there was an option for $1 fuel tax. That takes care of everyone complaining about people in the suburbs not paying their fair share.... muhahahah!

[Tinordi]

Originally Posted by hulkrogan

I wish there was an option for $1 fuel tax. That takes care of everyone complaining about people in the suburbs not paying their fair share.... muhahahah!

There should be an option for a carbon tax (which is what that would accomplish). Hits multiple birds with one stone.

[Jacks]

Reality is that if they put in a sales tax the additional revenue will be eaten up by the bureaucracy in short order and we'll still be spending all the resource money. The government needs to clean up it's act and get the pay/benefits under control BEFORE looking at any substantial tax increases. The way government is run needs to be changed, there is no incentive to improve things or save money when the PC's just keep shovelling billions at every problem.

[Azure]

Originally Posted by Bend it like Bourgeois

People won't notice that tax hike?

For an average family that's probably 500-1000 a month off of their take home pay.

I think we'd all notice.

Uhh.

Average income in Alberta is $78,000, so the average family pays $6,040 per year in taxes, if you consider the fact that the exemption amount is around $17,000 IIRC.

If you raise the income tax rate to 11%, the amount the average family would pay increases $650 per year, or $55 per month to $6,710.

Not sure where you're getting your numbers from, or maybe I'm missing something.

[Azure]

Another thing is, if I understand it correctly, since the exemption amount is around $17,000....no matter what your income is, you take off whatever the exemption amount is, and pay taxes on what remains.

Maybe you take off the exemption amount for people that make more than $50,000 per year.

[Azure]

I should also mention that I'm not saying you increase taxes without a serious look in how to reduce spending, because the fact is it is out of control.

I just went through the process to prove that you can easily balance the budget with a slight change to the tax structure.

Now imagine if you cut spending, raised the taxes a bit....Alberta could easily have $100 billion in savings over 10 years.

[Bend it like Bourgeois]

Originally Posted by Azure

Uhh.

Average income in Alberta is $78,000, so the average family pays $6,040 per year in taxes, if you consider the fact that the exemption amount is around $17,000 IIRC.

If you raise the income tax rate to 11%, the amount the average family would pay increases $650 per year, or $55 per month to $6,710.

Not sure where you're getting your numbers from, or maybe I'm missing something.

I read 15% + a sales tax and was thinking te average family was a bit higher

[Azure]

I guess if you get to the 15% level, plus the 3% sales tax, it is a bigger hit to the family.

But, like the GST, a PST should be exempt on items like groceries, baby clothes, and perhaps some other essential items.

[Tinordi]

Originally Posted by Bend it like Bourgeois

People won't notice that tax hike?

For an average family that's probably 500-1000 a month off of their take home pay.

I think we'd all notice.

I think that's quite high, don't think the arithmetic is correct.

Never-the-less, the quick retort is that yes, the level of services you're using from the government costs money, someone has to pay for it. What Albertans are doing now is making future generations pay.

[Flash Walken]

Originally Posted by Tinordi

There should be an option for a carbon tax (which is what that would accomplish). Hits multiple birds with one stone.

Could you explain what you mean by a carbon tax and how the province would benefit from the proposed revenues?