Southern Alberta Council on Public Affairs (SACPA)

It is conventional wisdom in Alberta that bringing in a sales tax would be political suicide, but there is nothing unusual about sales taxes. They are part of the fiscal fabric everywhere else in Canada, many U.S. states, and throughout Europe. A provincial sales tax of five percent could net Alberta $5 billion yearly and still be one of the lowest taxed provinces. The Alberta Taxpayer Protection Act, introduced by Premier Ralph Klein in 1995, states that a referendum must be held before a Provincial Sales Tax can be introduced. However, previous governments have shown that they have no problem sweeping away old laws like this one. In 2009, the PC government amended their much touted Fiscal Responsibility Act which prohibited deficit budgets in order to pass a deficit budget. What are the sources of opposition in Alberta and what impact would a sales tax have on the politics and finances of the province? The speaker will analyze these questions and assert that relying on a boom-bust economy with a real la