Nelson: Saying no to gross sales tax is Alberta's final stand

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Thermopylae, The Alamo, Masada, Rorke’s Drift and Saragarhi. What may these well-known battles of historical past have in frequent with us peace-loving (largely) Albertans of in the present day?

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Greater than you may think. These assorted places all concerned determined final stands, which is what we’re at the moment engaged in, preventing off the relentless rumblings from elitist, high-foreheads who assume it a beautiful and worthy concept to impose a provincial gross sales tax upon us.

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We’re an exception among the many provinces; not ponying up an additional seven to 10 per cent on most purchases atop the 5 per cent that Ottawa rakes in courtesy of the GST.

We are able to’t do a lot about that federal gross sales tax — although Premier Danielle Smith might need some plot to change that — however we positive as heck can do one thing to retain what stays as the ultimate, real Alberta Benefit.

Let’s merely demand, from each these UCP and NDP wannabes, a pledge earlier than every election to not impose such a levy till the solar decides to rise within the west or we vote to take action in a provincewide referendum. “Would you want to present the federal government extra of your cash?” would appear an easy sufficient query on any future poll kind, don’t you assume?

We all know in our bones what would occur with such a tax, regardless of the foolish claims about it fixing all our fiscal issues by smoothing out these booms and busts synonymous with Alberta.

To fulfill our suspicious nature, we’d like merely look to the opposite provinces and decide if the varied gross sales taxes resulted in a land of ever-bountiful balanced budgets and a no-debt existence.

Oops. Ontario owes about $450 billion, Quebec $220 billion and B.C. $100 billion. (The federal authorities is in an elite, much-more-than-a trillion-owed stratosphere, so we’ll not even trouble utilizing them for instance of gross sales tax economics.)

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The Enterprise Council of Alberta is the most recent bunch wanting a re-evaluation of the province’s income mannequin to even out the ups and downs of our resource-based economic system. A provincial gross sales tax could be the bees-knees apparently, serving to clear up this infinite fiscal conundrum. (Oh, and sure, let’s jack up each value by 5 per cent as a part of the battle towards inflation.)

To be truthful, within the economics classroom, or the considerate confines of a well mannered debating chamber, a consumption tax is a believable various to relying upon the whims of the commodity markets for regular, governmental income. And that’s why this nonsense will get regurgitated each few years. In concept, it is sensible.

However we aren’t wise creatures. We’re human beings. Idea means naught until it’s catchable and edible. And the least wise of all is a human being who needs to get elected. Oh, sorry, scratch that: it’s a human being already elected who’d like to remain that manner.

Give such individuals extra tax income to spend and that’s what they’ll do. Well being, training, social companies and different departments will all want more cash — perpetually and a day. Plus there’ll be handouts right here, there and in every single place each time an election rolls round. Imagining gross sales tax income could be handled any in a different way is akin to betting on the Flames to win the Stanley Cup. Now that’s false hope.

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As for this levelling-up argument — have we forgotten the Heritage Financial savings and Belief Fund? Wasn’t it alleged to do precisely that? Siphon off within the good instances — when vitality revenues flowed — for instances forward when such largesse ran dry?

How did that work out? It’s greater than 45 years since inception and essentially the most we’ve collected is about $20 billion. That wouldn’t cowl 4 months of provincial spending. Future gross sales tax income would endure the identical destiny, accompanied by a large sucking sound.

We’d not die on this hill as did the courageous males from these well-known battles talked about earlier, nevertheless it’s our final stand, nonetheless. No Alberta gross sales tax.

Chris Nelson is a daily Herald columnist.