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PST would hurt lower income Albertans

To the Editor, The Progressive Conservative government of Premier Alison Redford is musing about establishing new forms of taxation. The reason given is to eliminate the government’s annual operating deficit.

To the Editor,

The Progressive Conservative government of Premier Alison Redford is musing about establishing new forms of taxation. The reason given is to eliminate the government’s annual operating deficit. The 2011-2012 projected deficit stated by Finance Minister Ron Liepert last week is over $3 billion.

Liepert suggested that a good source of additional revenue would be the introduction of a provincial sales tax. How do you feel about paying an eight per cent provincial sales tax as Canadians in many other provinces do? Having a PST would continue the erosion of the Alberta Advantage and place a hardship on lower income Albertans.

Premier Redford’s finance minister also spoke of the re-introduction of an Alberta Health Care (AHC) premium, a tax dropped by Premier Stelmach’s government several years ago. Minister Liepert indicated an AHC premium would bring in $1 billion to the provincial government. What Liepert did not say is that having a health care premium is a tax on numerous Albertans who cannot afford it.

Many employees of large corporations, of municipalities, school boards, colleges and universities and the provincial government did not pay the AHC premium out of their own pockets as they had collective agreements or contracts in which the premium was paid by their employer. Those that paid the AHC premium out of their own pockets were the small business owners and farmers and their employees. These are the individuals, many with relatively low annual incomes, who were hard pressed to pay their premiums.

But rest easy. Minister Liepert said any re-introduced AHC premium would be different from the previous version, but he did not elaborate. Guesses may be that the new premium would be at a higher rate or that seniors now would also pay this tax. But rest assured, for the time being, until after the next election, Premier Redford will not want this matter as part of the conversation. Just as in the 2008 provincial election campaign a salary raise for MLA’s was not talked about by the Progressive Conservative party, yet within weeks after the election they gave themselves a pay raise of over 30 per cent. Experience tells them that in the four years until the next election many voters will have forgotten their outrage and dismay as they head to the polls.

Carl Christensen

St. Lina

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