On Thursday, March 24 Alberta’s Finance Minister, Robin Campbell introduced the province’s latest budget.
Among the highlights, or lowlights depending on your point of view, the 2015 budget included an elimination of the flat rate income tax. Albertans making $100,000 or more will see their tax rate move up half a percentage a year, starting next year, to a maximum 11.5 per cent.
For those making $250,000, or more the tax rate increases to 11 per cent in the first year, 11.5 per cent in year two, and 12 per cent in year three.
Albertans making more than $50,000 will also have to start paying for their provincial health insurance. Of course, the government also announced the obligatory tax increases on alcohol and cigarettes and gasoline. So what do I have to say about the 2015 budget?
Welcome to how the rest of Canada feels.
I must say I was amazed at the negative comments I read and heard after the budget was released. Some going as far as saying that they planned to move to other provinces because of the tax increases and the reinstatement of health care premiums.
To those people I say go. Good luck finding a province where there isn’t a progressive income tax system and health care premiums. Nor are they new to Alberta.
In my first tour in Alberta, during the era when Alberta premiers had to be former Edmonton Eskimo players (Peter Lougheed and Don Getty), progressive income tax and health care premiums were the norm.
I was shocked when Alberta under the Klein government instituted a flat tax and I was even more surprised when health care premiums were eliminated in 2008.
Now, I will admit that I don’t like paying taxes any more than the next person, but unfortunately they are a necessary evil.
And taking a look at some of our neighbours, even with the tax hikes, Albertans still get off pretty lucky when it comes to the provincial tax man.
In Saskatchewan, the income tax rate starts at 11 per cent for those making $44,000 or less, and moves up to a maximum of 15 per cent for those making $125,000 or more. In B.C., the tax rate is actually lower than Alberta’s ranging from 5.06 and 7.7 per cent for those making up to $38,000 and $75,000 respectively. However, the tax rate goes up to 16.8 per cent for those in the top tax bracket and health care premiums start for those making $22,000.
What people should be more concerned about are the nine per cent cuts to all areas of the provincial government that was announced in February.
For those who put the blame on Alberta’s public service, they are not too blame.
As a portion of the overall economy, Alberta spends the least out of all the provinces on social programs. According to The Better Way and Public Interest Alberta, the province also has the least amount of public service employees per capita.
So what is my point? Whether Prentice’s first budget is right for the province time will only tell, but let’s not overreact. After all it could be worse.
