Chapter 4

“Norris promises low-income tax cuts”, Edmonton Journal June 30/06
[http://www.canada.com/edmontonjournal/news/culture/story.html?id=847f7e9c-78d2-493a-b67f-ab8069bfff8a&k=92242]

Mark Norris is a Conservative leadership candidate in the province of Alberta. He says that low-income Albertans are missing out on the Alberta Advantage. He promises to make tax cuts for the less wealthy instead of to those who are. His proposal is to reduce taxes for low- and middle-income Albertans by increasing exemption levels and eliminating health care premiums. The lower end in Alberta is struggling, and he thinks they need a helping hand. Currently, the health care premium is extremely regressive. If your income is $100,000, you pay $1200, and if you make $30,000 it is still $1200. He wants to get rid of that and instead add a 1.5% premium to the tax code, spreading it out so it’s based on the ability to pay.

This is something that I think requires a little more perspective before fully generating an opinion. Alberta is probably Canada’s richest province, rivalled by Ontario. Because of their wealth, they don’t even get any benefit out of the federal government’s equalization payments (money given to poorer provinces to help narrow the gap between have and have-not provinces). Not to mention the $400 prosperity cheques every Albertan resident gets. It’s hard to see how people would be missing out on the Alberta Advantage. I can see why wanting to reduce taxes for low-income earners is a good thing, but you’d be hard-pressed to actually make that promise since Alberta already enjoys the lowest overall taxes in Canada with among the highest level of services.

Nonetheless, I agree with his plan to change the health care premiums. I believe that a progressive system is far more advantageous than a regressive one. It helps those that are financially challenged (however few there are in Alberta – they have the highest disposable incomes and the lowest unemployment rate in Canada) and take more from those with higher dividends, which exudes better equality. As long as the marginal tax rates aren’t that high, progressive is definitely the most overall efficient, beneficial, and fair system.