AFL Labour News (9405 bytes)
sidemenu.gif (11389 bytes)
Labour News An Alternative News Source (738 bytes)
Broken Promises, Shattered Hopes
Working Albertans won't see tax breaks ever – Pannu

New Democrat MLA Raj Pannu released a letter to Premier Klein asking why he broke a promise to give tax relief to low-income Albertans first.

Pannu cited a July 27 article where the Premier is quoted: "What we want to do is make sure that those who can least afford to pay tax get the first break." However, since the Premier made that commitment, high-income Albertans got the first windfall as the Klein government eliminated the high-income surtax.

"Apparently the Premier’s desire to hand tax breaks to the rich overwhelms his desire to keep his promises," said Pannu. He added that the windfall for the wealthy will only continue if the Tories pursue the flat tax of 11%.

"This was only a downpayment on the bigger gift the rich will get with the flat tax. Working Albertans will see little or no tax relief with the flat tax. Some will even have to pay more," added Pannu.

Pannu also released information detailing the comparative effects of the current Conservative, Liberal and New Democratic proposals for tax reduction.

The Tories’ elimination of the high-income surtax gives no benefit to a two-income household with an annual income below approximately $100,000. Meanwhile, the Liberal proposal, while somewhat fairer than the Tories' still directs most tax savings to those with higher incomes.

Meanwhile, the New Democratic policy to eliminate health care premiums is the fairest and easiest way to put more money the pockets of Albertans. This would reduce the total tax load in Alberta by approximately $600 million dollars, giving virtually every family over $800 in financial relief.

"There are all kinds of reasons to get rid of health care premiums – they are costly to administer, they are unfair and they are expensive. But the one that Albertans will find most compelling is that with one stroke of a pen, $816 a year could be returned to every working family in the province," concluded Pannu.

go back go to next page


About | Presentations | Executive Council | Labour News | News Releases
Links | Research | Speeches | Standing Committees | HOME