alberta government

With Ralph Klein’s passing, many have tried to find a constant theme in his political life. The late premier was, to be sure, a populist. What else explains his reputation as a big spender when mayor of Calgary and then his switch to a prudent premier?

The explanation is not complicated: once the bills come due, even a populist politician will change course when the public sours on policy gimmicks, when they demand a government focus on the basics. That includes not bankrupting public finances or assuming taxpayers can be increasingly gouged to pay for political vote buying.

Having spent itself into a considerable deficit problem, the Alberta government seems to be considering a sales tax as part of its plan to dig provincial finances out of the red (or at least they’re trying to start a ‘discussion’ to that end). The alternative, we’re led to believe, is fewer and lower-quality public services due to obligatory spending cuts. A closer look at the facts suggests that’s not the only option available.

Instead, they could choose a win-win scenario that improves health care while reducing waste and inefficiency.

The last time Alberta was in a fiscal mess due to low energy revenues and over-the-top government spending, some politicians and pundits said what Albertans really needed was higher taxes. That was back in the late 1980s and early 1990s. Those voices were wrong then and they are wrong now.

For one thing, any fantasy that a tax hike will solve Alberta’s fiscal woes is the preserve of people who dream in tax-happy Technicolor.

Sure, tax reform is desirable. A provincial sales tax would be smart economic policy since sales taxes are some of the least harmful imposts.

Back in the mid-1990s, British Columbia’s New Democratic government published a pre-election budget that forecast a balanced ledger for the then-ending fiscal year. The Glen Clark government quickly dropped the writ and narrowly won re-election.

But soon after the election, the government revised its forecast. A deficit of almost $400-million was predicted, about what some private forecasters predicted back when the original budget was released.