Your Choice: Alberta Budget 2013

Today I saw something new from the Alberta Government - a very interesting tool -although the wording in the "read more" sections of the possible/proposed cuts (and taxes) is very leading....  

"Only one percent of Albertans would fall into this second income tax bracket" -I think I heard the whole "One Percent" argument last year by a certain "special interest group" whose name isn't currently Occupying my memory. ;)

Divide and Conquer, "punish the rich, there aren't enough of them to vote it down," kind of annoys me.  I aspire to be in the 1% - why take that goal away from me?  Won't I be creating jobs along the way???   I'm not Mr. Burns for God sake -although even he did create a LOT of jobs....  (Too bad about the whole "blocking out the sun" thing though.)

The math is (probably purposefully) too simple.  The sales tax section, for example, suggests that a 2% or 5% Sales Tax just "automatically" brings in 2% or 5% more revenue.  According to economics, the net spending by consumers would typically be about the same (assuming most people are, as has been reported, living paycheque to paycheque,) so the net yield of the tax would be less than what they're proposing....

For example, people with $25,000 to spend are still going to spend $25,000, not magically have $26,250 to spend just because our government brought in a tax.

In reality, with the sales tax, they'd only have $23,810 to spend, plus the sales tax of $1190 bringing them to the $25,000 they had to spend -assuming like many, there are no savings (which is where this would come from if they WERE saving, so it is still relevant!) 

Already their forecast is off.  In this case, a 5% tax they predict would bring in $5 Billion, would in reality bring in $4.76 Billion.  (assuming no other economic consequences.)  "oops, we just lost a quarter Billion out of the budget and we haven't yet implemented it!!!

The wording on the "bring in a PST/HST" section is also very leading.  Especially the "Shaw Cable-style introductory rate" of a 2% tax rate.  Like it would stay at 2% for long - probably about as long as your low rate for cable and Internet services!  I appreciate the tool that has been provided here, I just wish there was a LOT less "steering" in the presentation. 

"...cuts would severely hurt this group of Albertans, kill jobs, punish low income families, make education unattainable, etc. etc. etc."

This is a great first step to opening this conversation.  More of this interaction with the electorate would be great! (again, without the leading descriptions.)

Regardless, visit the site and get your voice heard.

http://www.budgetchoice.ca/