Currently in Alberta people are divided about the topic of what do you do with the extra money? Do you save it? Spend it? Reduce taxes? People and the government are confused and have no real plan with a desired outcome. The next Premier of Alberta needs to have a plan and promote and present it. Just saying we put it in the Heritage Trust Fund is not good enough. The Alberta tax plan detailed below explains how a portion of Alberta’s surplus are set aside in a savings account until its interest generated replaces taxes paid by Albertans in Alberta.
See “Alberta – first tax free jurisdiction in North America” plan detailed below.
Solution – one solution to this answer could be – put a good portion all surpluses in the Alberta Savings Account (not necessarily the Heritage Trust Fund) and once it grows in value so that the interest income generated will replace the provincial income tax.
If this plan is presented properly and Albertans know the reason and outcome it would be generally accepted. If Albertans understood that this plan will eventually eliminate provincial income tax, they would look forward to it.
One way to promote this idea would be to explain why paying no sales tax, no provincial income tax; no provincial corporate income tax would benefit Albertans Directly.
Once these goals have been achieved, the final tax remaining would be the federal goods and service tax and the federal income tax. These need to be eventually reduced or replaced. However Alberta does not control these areas and will have to be addressed after the first stage is completed.
One possible solution to this issue would be as the Alberta Savings Account grows beyond the replacement of the provincial income tax, It would be used to supplement and eventually replace federal taxes paid by Albertans. So simple it could work.
