I guess that all of us dedicated Albertans were a little tentative last week when the Progressive Conservative Party presented our ‘Time to get tough and tighten your belt’ 2015-2016 provincial budget. Bottom line is that they plan to spend $48.4 billion on an expected revenue of $43.4 billion, which represents a five-billion dollar deficit, the largest in Alberta’s always colorful, often controversial, and totally unpredictable political history.
So we are all wondering just how this ‘toe the line’ budget will affect all of us, who will be the winners, and who stands to lose or gain the most. Looking over all the final fiscal facts and figures, we can now sit down with our calculators and soon to be tax returns and figure out how to balance our books going into the future. Here are some of the highlights, from which I am sure that you will all have an opinion to share, and here is how this mostly retired 72-year- old senior looks at it all, wistful, but not always very wise.
*With the end of the 10 per cent flat income tax rate, the two new brackets for those lucky 330,000 workers who are making more than $100,000 or $250,000 will have to pay just a little more back each year to help fill up the currently depleted government coffers. Even the government, just before calling an election, has agreed to cut 2016 full time jobs, which will result in 370 layoffs.
*For quite a few years, we did not have to pay Alberta health care premiums, but now, those individuals making more than $50,000 a year will have to pay a health care levy, effective July 1, 2015, which will be capped at $1000.00 annually and collected through the income tax system. I believe that we have one of the best health care systems in the world, but I really hope that the powers to be will use these extra funds to upgrade or add new facilities, staff, and equipment to their already over-stressed services, which must be available 24-7 to each and every Alberta citizen, no matter what their age, income or walk of life.
*The new gasoline tax had already jumped four cents a litre before the ink was even dry on the new budget, but they claimed that this tax has not been been raised since 1991, and will still be the lowest in the country. Maybe to soften the sudden surge at the pumps, we might be able to ride our bikes or walk a little more when the weather is good, and the extra exercise will be great. Taking a bus or car-pooling has worked well in some areas, and for those of us who can figure out that handy-dandy GPS, we will usually be able to find the shortest distance between two points, occasionally getting a little advice from the resident road-wizard in the back seat.
*Taxes are always going up smokes and liquor, but then again these pleasures or habits are our own personal choice. We are now paying 16 more cents for a bottle of wine and 90 cents more for a case of beer, but if we share the costs on a group and social basis, it will save us a little, be just as much fun, and a whole lot safer. I quit smoking when cigarettes went over $5 a pack, but now I see that the tax alone is $45 for 200 cigarettes, for a total cost of $104 a carton or over 50 cents a cigarette. This time around corporations and oil companies will be exempt from any tax crunch.
*The fees that we pay for everything from camping to court filings to marriage certificates are going up, while traffic fines will be boosted by a whopping 35 per cent (including a huge hike in distracted driving offenses), which we can all quite easily avoid by not breaking the law.
*We should all be very pleased that they have introduced tax breaks for the working poor, where the over 75,000 families in our province who earn less than $41,220 a year will be eligible for an annual supplement for each child to a maximum of $2750 annually. I will, however, not hold my breath to see where they have yet put together a long term plan to assist our growing list of homeless people, or those who can’t afford proper housing or brighter benedits for their families.
*Sadly The Charitable Donation Tax Credit is being reduced to 12.7 per cent from 21 per cent for donations more than $200. Most of our year round sports, recreation, social and group activities and organizations are spearheaded by dedicated community volunteers, and really depend on kindly donations and the support of others to keep these vital programs going for all age groups.
Whatever the case, the aftermath of all this should be a very interesting provincial election in the very near future. Now that the farewell party for some of those prospective candidates who crossed the floor from one party to another is over, there will be lots of new faces in the running for all parties who are vying for a chance to lead our great province back into the black and ongoing prosperity long into our future. Let’s all sharpen our pencils, get involved and make our very important choice when the time comes. In the meantime, just go ahead and have a great week, all of you.