Some Questions about Money
We have received a number of suggested questions about cost increases in health care premiums, electricity, natural gas, and auto insurance. Henry likes to busy his head with numbers so he has put together the following - Martha
Mr Klein, perhaps you can help me with this.
Back in 2001 you introduced the flat tax. Martha and I have an average income and your flat tax saved between us about $840 a year which works out to $70 a month. Since then my health care premiums, my car insurance, my electricity and my natural gas have gone up. I did the math and we’re $33 a month in the hole.
My high school buddy Ed makes way way more than I do. He didn’t tell me how much but he did say the flat tax saved him about $9600 a year or $800 a month. He’s suffered similar increases in health care premiums, insurance and utilities as we did but he comes out $697 a month to the good. Here’s is a table to illustrate my problem.
Your flat tax costs the Alberta treasury about $1.5 billion a year in tax revenue. This is made possible by our God-given energy resource revenue of about $7 billion a year. It seems to us that resource revenues should be shared equally among Albertans rather than those with the highest incomes getting the most and those with the lowest the least. In other words, how come Ed and I don’t get the same?
Mr. Premier, I understand why Ed is getting your vote. I’m sure you understand why Martha and I are less enthusiastic. You could help by answering the following questions.
We look forward to your response.
Mr Klein, perhaps you can help me with this.
Back in 2001 you introduced the flat tax. Martha and I have an average income and your flat tax saved between us about $840 a year which works out to $70 a month. Since then my health care premiums, my car insurance, my electricity and my natural gas have gone up. I did the math and we’re $33 a month in the hole.
My high school buddy Ed makes way way more than I do. He didn’t tell me how much but he did say the flat tax saved him about $9600 a year or $800 a month. He’s suffered similar increases in health care premiums, insurance and utilities as we did but he comes out $697 a month to the good. Here’s is a table to illustrate my problem.
Amount/month | Me | Ed |
Tax saving from flat tax | $70.00 | $800.00 |
Health Care increase | -$10.00 | -$10.00 |
Natural gas increase | -$28.00 | -$28.00 |
Electricity increase | -$31.00 | -$31.00 |
Car Insurance increase | -$34.00 | -$34.00 |
Result/month | $33.00 down | $697.00 up |
Your flat tax costs the Alberta treasury about $1.5 billion a year in tax revenue. This is made possible by our God-given energy resource revenue of about $7 billion a year. It seems to us that resource revenues should be shared equally among Albertans rather than those with the highest incomes getting the most and those with the lowest the least. In other words, how come Ed and I don’t get the same?
Mr. Premier, I understand why Ed is getting your vote. I’m sure you understand why Martha and I are less enthusiastic. You could help by answering the following questions.
- Does your Progressive Conservative party believe that revenue from resource royalties should be shared equally by all Albertans? If yes, what steps will you take to remedy the inequities caused by your flat tax implementation? If no, could you please explain why?
- The increases in Health Care were due to an additional tax you placed on Albertans when you increased the health care premiums. If you will not eliminate healthcare premiums for Albertans will you at least roll back the increase?
- The increases in natural gas and electricity are due in a small way to increases in natural gas costs but due mostly to your government’s policy of deregulation which allows the energy providers unrestricted profits. We realize that you do this in the interest of free enterprise but it is not working. The small business and residential consumer is at the mercy usually of a single provider who gives us a choice of either an overpriced variable price agreement or an overpriced fixed price agreement. Will your party, if elected, restore regulation at least for the small residential and business consumers?
- Auto insurance in Alberta is substantially higher than our neighbouring provinces of Saskatchewan and B.C. which have public auto insurance. Mr. Klein, you promised that our rates would be comparable with these provinces. Surely you did not mean that our rates would be way higher compared to theirs? Will you please commit to implementing a public insurance scheme so that our auto insurance rates can once again be affordable?
We look forward to your response.
posted by Martha & Henry at 9:04 AM
3 Comments:
Dear Martha and Henry
Do not hold your breath waiting for an answer from the Klein government.
Your letter has a major flaw. You are dealing with facts and logic. Those things just don't cut it with the Klein government. Power and ideology are the motivators with them.
You have not mentioned the great amount of money the government wastes by the administration of the health care premium tax and the fact that millions can't be collected -- problems that would not exist if the tax was simply removed. But no matter. Those things also involve facts and logic. Their ideology says "kick those who are down."
Dismayed
He will just blame it on eastern Canada anyway.
A convienent cop out.
Beware governments offering tax cuts.
Henry's table illustrates a fundamental truth that it not that well understood about most right wing governments that call for tax cuts. The cuts are always structured primarily to benefit the wealthiest, but sold as a tax cut that benefits everyone. Klein’s flat tax scheme is no different than George Bush’s tax cut in the U.S. which flowed most of the tax cuts to the wealthiest Americans.
The Alberta flat tax is financed by energy royalties. The next major tax cut in Alberta will likely be financed by a reduction in government health care spending. The wealthiest will get the biggest tax cut and can use a portion of their tax cut to pay the new healthcare user fees; purchase additional health insurance for delisted services; and still have money left over for a trip south in the winter. The middle class will find that their smaller tax saving will not cover their increased health costs. They will either have to take a lower level of health services or find the money to pay for them from somewhere else. That’s just the way it works.
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