Rick Bell: Travis Toews, the budget boss in the provincial government navigating his balance sheet like a ship captain in a hurricane, keeps advancing a script we've heard before but bears repeating
Author of the article:Rick Bell
Publishing date:Dec 03, 2021 •
Premier Jason Kenney in Edmonton on Monday, Nov. 15, 2021.
PHOTO BY DAVID BLOOM /Postmedia
We do indeed live in an ever-changing world spinning on a very unfamiliar axis.
These days it sure looks like this provincial government is no good at killing cash cows but possibly getting rid of sacred ones seems to be less of a problem.
We do indeed live in an ever-changing world spinning on a very unfamiliar axis.
These days it sure looks like this provincial government is no good at killing cash cows but possibly getting rid of sacred ones seems to be less of a problem.
It just keeps coming up. The more it’s talked about, the more it is …
What do the fancy-pants linguists call it? The more it is normalized.
Travis Toews, the budget boss in the provincial government navigating his balance sheet like a ship captain in a hurricane, keeps advancing a script we’ve heard before but bears repeating.
After all, this week he repeated it.
The man working the numbers said “at this point in time” there will be no sales tax.
But before the next election, in other words sometime in the new year, a collection of experts will be assembled.
Finance Minister Travis Toews delivers the 2021 Alberta budget on Feb. 25, 2021.
PHOTO BY DAVID BLOOM/POSTMEDIA
In the words of budget boss Toews they will be given “a blank sheet of paper.”
They will be told: “Look, given the economic makeup and structure in the Alberta economy what would be the most appropriate and efficient tax structure.”
The next line of Toews is crucial.
“I won’t take anything off the table.”
Chow down.
These deep thinkers will think great thoughts, mine the mathematical realities as they see them, and dollars to doughnuts they will recommend a sales tax for Alberta.
I’m saying that last bit, not Toews.
But put your finger to the wind and that sure feels like the direction these days.
There would have to be a referendum vote of Albertans to thumbs-up a sales tax but we would be told it would be good for the economy and, for a change, the provincial coffers could actually save some of the billions in oilpatch loot the government scoops every year.
Some Albertans could get angry. Some Albertans will get angry.
Isn’t being the only province without a sales tax a part of Alberta being Alberta? Isn’t having no provincial sales tax included in the definition of The Alberta Advantage?
Of course, then the other shoe could drop. The cat would be let out of the bag.
Perhaps, by then, Toews would try to calm the waters.
“Hey, before you folks scream, we could give you an income tax cut!”
Knowing the mild-mannered Toews, he’d probably leave out the exclamation mark.
A sales tax and an income tax cut. Economic Einsteins have thought about such a possibility.
Maybe some back-of-the-envelope arithmetic could be done. This is all spitballin’.
Maybe Alberta could have a 5% sales tax AND, AND, AND … lower today’s 10% personal income tax rate to, like, 5%.
You’d have more take-home dough in your paycheque but you’d be paying a sales tax.
The wise souls would suggest we’d be better off. The province would be better off. The provincial government’s books would be better off.
Trevor Tombe is a well-known economist from the University of Calgary.
He realizes some people will feel an Alberta sales tax is something to be feared and he thinks he knows why
In the words of budget boss Toews they will be given “a blank sheet of paper.”
They will be told: “Look, given the economic makeup and structure in the Alberta economy what would be the most appropriate and efficient tax structure.”
The next line of Toews is crucial.
“I won’t take anything off the table.”
Chow down.
These deep thinkers will think great thoughts, mine the mathematical realities as they see them, and dollars to doughnuts they will recommend a sales tax for Alberta.
I’m saying that last bit, not Toews.
But put your finger to the wind and that sure feels like the direction these days.
There would have to be a referendum vote of Albertans to thumbs-up a sales tax but we would be told it would be good for the economy and, for a change, the provincial coffers could actually save some of the billions in oilpatch loot the government scoops every year.
Some Albertans could get angry. Some Albertans will get angry.
Isn’t being the only province without a sales tax a part of Alberta being Alberta? Isn’t having no provincial sales tax included in the definition of The Alberta Advantage?
Of course, then the other shoe could drop. The cat would be let out of the bag.
Perhaps, by then, Toews would try to calm the waters.
“Hey, before you folks scream, we could give you an income tax cut!”
Knowing the mild-mannered Toews, he’d probably leave out the exclamation mark.
A sales tax and an income tax cut. Economic Einsteins have thought about such a possibility.
Maybe some back-of-the-envelope arithmetic could be done. This is all spitballin’.
Maybe Alberta could have a 5% sales tax AND, AND, AND … lower today’s 10% personal income tax rate to, like, 5%.
You’d have more take-home dough in your paycheque but you’d be paying a sales tax.
The wise souls would suggest we’d be better off. The province would be better off. The provincial government’s books would be better off.
Trevor Tombe is a well-known economist from the University of Calgary.
He realizes some people will feel an Alberta sales tax is something to be feared and he thinks he knows why
.
Calgary-based economist Trevor Tombe
PHOTO BY LEAH HENNEL/POSTMEDIA
“I don’t think it should be a scary thing,” says the professor.
“But perhaps the most important reason is because you see the amount you pay in sales taxes almost every single day.”
Yes, we do have the GST.
“It’s very visible. That makes it more psychologically painful to pay than income taxes, which are all done in the background and you don’t really think about it except for once a year.
“Things that are in your face bug you. They take up a lot more space in your head, more mental energy. That means the pain of paying is higher for sales taxes.”
Then there is the question of whether people would believe we weren’t being screwed if a sales tax came in along with an income tax cut.
Tombe admits some individuals wouldn’t trust the government to have the calculations done correctly. You think.
The economist also points out when oil prices are higher, opposition to a sales tax would likely be greater.
When times are tougher, a sales tax stands better odds.
“When the budget deficit is really large, people might be willing to bite the bullet and have a sales tax.”
Right now, oil isn’t in the stratosphere but it’s not shabby.
What do Albertans think?
This time last year, there was a provincial government survey on all things financial ahead of the Alberta government budget.
Questions were asked, some about taxes and your tolerance for taxes.
What did Albertans say?
According to Toews’ office, the results were never made public.
rbell@postmedia.com
“I don’t think it should be a scary thing,” says the professor.
“But perhaps the most important reason is because you see the amount you pay in sales taxes almost every single day.”
Yes, we do have the GST.
“It’s very visible. That makes it more psychologically painful to pay than income taxes, which are all done in the background and you don’t really think about it except for once a year.
“Things that are in your face bug you. They take up a lot more space in your head, more mental energy. That means the pain of paying is higher for sales taxes.”
Then there is the question of whether people would believe we weren’t being screwed if a sales tax came in along with an income tax cut.
Tombe admits some individuals wouldn’t trust the government to have the calculations done correctly. You think.
The economist also points out when oil prices are higher, opposition to a sales tax would likely be greater.
When times are tougher, a sales tax stands better odds.
“When the budget deficit is really large, people might be willing to bite the bullet and have a sales tax.”
Right now, oil isn’t in the stratosphere but it’s not shabby.
What do Albertans think?
This time last year, there was a provincial government survey on all things financial ahead of the Alberta government budget.
Questions were asked, some about taxes and your tolerance for taxes.
What did Albertans say?
According to Toews’ office, the results were never made public.
rbell@postmedia.com
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