Health care “premiums” are a tax. Say it like it is.

To say that the Redford government is up the fiscal creek is an incredible understatement. The Redford led Progressive Conservative Party of Alberta won the 2012 election on a platform of false revenue projections and completely unsustainable spending promises that can only be called outright lies. Fiscal reality has come home to roost and Alberta is now facing a catastrophically large budgetary deficit.

Like rats from a sinking ship, Alison Redford’s communications staff are bailing out as they know that participating in the festival of lies demanded to try and polish Redford’s turd of a budget will only destroy any future hopes of work within the field of communications. The lack of communications strength was quite clear and visible in Alison Redford’s bizarre address to Albertans where she spit out blame and excuses for the disaster of her own making while really saying nothing else of merit. Even the Alison Redford’s twitter account appears to have been assigned to somebody with the communications skills of a six year old as petulant tweets attacking radio hosts are sent out.

Now that is has been pretty clearly established that Redford has reduced her communications staff to one of the most expensive yet simplistic groups in the nation, we can speculate on where they plan to go to try and dig their administration out of this embarrassing hole.

Redford has now claimed that she will not raise taxes despite the gargantuan deficit that she created. This leaves her in something of a quandary. A simplistic way to get around this of course is to label a tax something else. That is exactly what happens when we hear speech on health care “premiums” and predictably we are hearing rumblings that the health care tax may be reinstated.

The general health care tax that was mislabelled as a “premium” was one of Alberta’s most regressive and inefficient taxes ever. While the tax provided little burden to high income earners, it was quite onerous for people and families on fixed incomes. The health care tax was very difficult to administer and a very large portion of the generated revenue was lost through collections and administration.

The funds from the health care tax were never kept in a separate dedicated fund for health expenditures. The health care tax was indiscriminate of the payer’s own health or lifestyle. Healthy people and sick people paid the same “premium” and all revenues went into general revenues. That is why no matter how some try to say it, the health care tax is a tax and not a “premium” by any measure. Redford’s communication army should try something new through telling the truth for a change. Admit a tax increase for crying out loud. It’s not as if Albertans have not already concluded that Redford is full of bullshit. We won’t be fooled now.

Some claim that a health care tax helps teach Albertans the true cost of health care. Unless the health care tax is at least a few thousand dollars a year, that simply is not true. A few years ago, I encountered a somewhat informed lefty who was convinced that the monthly “premium” that he paid for health care accounted for his entire costs in health care. ┬áThe monthly payment actually added to confusion about the real cost of care in our socialised monopolistic health care system.

Perhaps bringing in a health care tax is a good idea or perhaps it is not. Let’s not cloak this in bullshit though and call it what it is; a tax increase and another broken Redford promise if it comes about.

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