Budget masks effects on working people

The newly announced UCP budget is a devastating blow to the health and prosperity of our province. The government is attempting to mask the impact of its budget on working people in Alberta, but a simple look at the math reveals the true story.

Budget freezes are budget cuts in disguise. Over the last 10 years, Alberta’s population has averaged 1.7 per cent growth per year and inflation has risen at 1.7 per cent per year. Thus, whenever you keep spending flat year over year, you are actually cutting spending by 3.4 per cent. When you compound this over the four-year mandate of the UCP government, a ministry that is “lucky enough” to only have their budget frozen (e.g. education) will still have experienced a 14.3 per cent reduction in spending power. These are major cuts to services that will be felt by all Albertans.

We need to consider ways to increase revenue rather than focusing on cuts. In that respect, I applaud the decision to increase taxes on tobacco and to (finally) impose a hospitality tax on Airbnbs. However, these are boutique tax increases that will not have a meaningful contribution toward fiscal sustainability.

Albertans lucky enough to have a job continue to enjoy the largest income per capita in Canada despite having some of the lowest tax rates. Cuts to health care and education will only make us sicker and dumber — that’s no way to compete in the modern economy.

David Lindenbach, Calgary