Mark Milke is author of “Tax Me I’m Canadian: A taxpayer’s guide to your money and how politicians spend it.”
With Alberta expected to run large deficits for at least the next three years, there’s an argument you’ll hear made that the province can return to balanced budgets by taxing itself more. However those who make this claim do not understand what led to Alberta’s initial success in getting to surpluses in the first place: prudence on the spending side of the budget.
Some, unfamiliar with why Alberta once prospered, thus pin the blame for the last decade’s deficits and growing debt on the collapse of oil in 2014 and the decline in the royalties and corporate and personal income tax revenues derived from the same. Albertans are thus told by selected pundits and politicians, that higher taxes would solve at least part of their present red ink problems.
Yet advocates for higher taxes skip three important things: First,