A new form of government allows a rare opportunity to reform the entire tax system. The last referendum of the AAIM Option reformation plan will be focused on a system of taxation that will adequately fund the needs, wants that all Albertans will pay for.
The AAIM Option plan calls for a tax system that will solve the funding shortfalls of critical programs, agencies and get the province / state back to a revenue surplus that can be shared with the voter/shareholder.
Alberta's tax system in inadequate to fully fund the many programs and agencies the government oversees. Health, Education, Justice, Security and Capitol Investment are all woefully underfunded and the result is internal strife and disharmony. To solve the funding issues, the AAIM Option Plan proposes a Flat Tax system and a close examination of how tax dollars are spent.
THE DISCUSSION & DEBATE
With the answers now known to the referendums 1 through 6 including the new Alberta Bill of Rights & Freedoms Act, the reformation of the government-controlled agencies can begin. But how will Albertans pay for it all?
The discussion and debate should be vigorous and must examine;
1. The reason we pay taxes.
2. The real cost of government, properly staffed, well paid and trained!
Taxation systems must be debated. Systems such as;
1. A FLAT TAX:
The Flat Tax System is preferred by the AAIM Option Plan because it is simple to understand and administer. Simply put, a taxpayer, personal or corporate, will calculate the sum of their income from all sources, and pay a fixed rate.
Under the Flat Tax system a tax payer will pay a tax rate to be determined by the people.
**Rates shown are examples only, the actual rates will be determined by the people.
Personal (wages & capitol gains over the set threshold limit) at 15%
Corporate (Gross Profit) at 20%
Sales at 3% (food, shelter, water, air and heating fuel exempt)
Export Tax at 5% of the value of the goods or service
Import Tax at 5% value of the goods or service
Under this system there would be no tax on;
a. Capitol gains under the set threshold limit,
c. Luxuries like fine cars, jewelry, homes etc.,
d. Continued learning
e. Food, air, water.
2. A PROGRESSIVE TAX:
This is the current tax system. A system that applies a tax to many areas. The more you earn the more you pay! Not a good incentive to make money, but it sounds like a good incentive to hide your money. Wages, corporate, sales, carbon, capitol gains, fuel, cigarettes', cannabis, alcohol, death and more are taxed at different rates.
**Rates shown are the actual rates.
Source Deduction (wages) at 10 - 15% based on employment earning's
GST at 5%
Corporate tax at 8%
Property tax paid by property owners is based on property value
Capital Gains are taxed at 30% for unexpected gains over $100,000.00
Sin Tax at various rate such as 27 cents per gram of tobacco or alcohol at 72 cents per liter
Fuel Tax at 13 cents per liter for both gas and diesel
How will government spend tax dollars? The discussion must also cover how tax revenues will be dispersed for;
1. Health Care,
4. Environmental Programs,
6. Social Programs,
8. Heritage Trust Fund,
9. Capitol Investment.
If Alberta separates, addition spending will be needed for,
10. Border Security,
11. State Police,
13. Tax Collection,
14. Food Inspection,
15. Diplomacy (embassy's, consulates, etc.),
16. Foreign Aid.
Proposed Referendum Question
Q. WHICH TAXATION SYSTEM SHOULD ALBERTA ADOPT?
1. Flat Tax.
2. Progressive Tax.