In places like Alberta Canada they have done better. In 2008 the Alberta gov't abolished premiums for health care
Previously the premiums were affordable, costing individuals $528/year & now it is FREE
http://www.canada.com/edmontonjournal/news/story.html?id=63835597-76da-4add-9d3e-c10510258254
Alberta to end health care premiums
Alberta's Conservative government will eliminate health care premiums entirely on Jan. 1, Finance Minister Iris Evans announced today in her provincial budget.
By Edmonton Journal April 22, 2008
Alberta to end health care premiums
EDMONTON — Alberta's Conservative government will eliminate health care premiums entirely on Jan. 1, Finance Minister Iris Evans announced today in her provincial budget.
Evans says chucking the annual premium – which critics call a regressive tax – and making other targeted cuts in the budget will provide tax savings of nearly $1.3 billion.
“The time has come for Albertans to enjoy additional direct rewards of our province’s prosperity,” added Premier Ed Stelmach. “This government made a commitment to Albertans to eliminate health care premiums within four years. We said we would do it sooner if we could and that is exactly what we’re doing.”
The health care fee – which this year cost families $1,056 and singles $528 – has been collected since 1969. Only B.C. and Ontario collect similar health premiums.
According to budget documents, the elimination of the premium is “roughly equal to a 12 per cent reduction in personal income taxes.”
The move will also be a boon to businesses that pay the cost of the premiums for their employees, saving large corporations millions annually or freeing up money for salary increases or other benefits for their employees.
The elimination of the premium, which generated about $1 billion annually, makes Alberta by far the lowest taxed jurisdiction in the nation, Evans said in a speech to be delivered at 3 p.m. to the Alberta legislature.
“If Albertans and Alberta businesses were in any other province, they would pay between about $10 billion and $18 billion more in taxes every single year,” she said. “That works out to about $3,000 to $5,000 for each Albertan.”
Evans is forecasting a $1.6-billion surplus on revenues of $38.6 billion and record expenses of $37 billion based on oil at US$78 per barrel and $6.75 per gigajoule for natural gas. But the province has a long history over lowballing surpluses. Over the past five years, the province has forecast surpluses totalling about $9 billion when they actually totalled more than $30 billion. Last year’s surplus, estimated at $2.2 billion, was $4 billion.
Although oil prices are running at $118 per barrel, Evans says her forecast is reasonable, pointing out that a shift of $1 in the price of oil can affect revenue by $130 million.
“Only one year ago, oil prices were around $65 per barrel. Who knew then that they would be hovering around $110 today?”
The finance minister boasted that this is the Tories' 15th consecutive balanced budget.
Evans said the budget, which boosted spending by 11.6 per cent over last year’s spending, is “a prudent budget that stays within our means.”
Alberta’s per capita spending is now three times the average level of other provinces.
The largest chunk of new spending goes to health care, which gets an infusion of nine per cent or $1 billion – about 40 per cent of the total operating spending.
The Tory government made no increased commitment to savings aside from its promise to put one-third of the surplus into the Heritage Savings Trust Fund. But Evans said her government will deposit $279 million into the fund to keep pace with inflation.
Although the capital fund was increased by a whopping 21 per cent to $8.7 billion this year, the budget set aside no new money for schools and other facilities that have not been previously announced.
Low- and middle-income families as well as caregivers and individuals with disabilities are also in line for modest tax savings.
The Tories are increasing the Alberta family employment tax credit by 10 per cent for families moving off income support programs – a move that affects about 145,000 families. Families of four earning less than $60,000 could receive an additional $360 annually.
Caregiver, infirm dependent and disability income supplements will more than double to $9,355, while the disability amount will increase to $12,466.
The province will be cautious with its newly announced $100-million “enterprise” fund to help boost the Alberta’s technology industry after years of steadfast Conservative dogma that government stays out of the business of being in business. Unlike the controversial Getty-era practice that saw the province directly invest in often-disastrous corporate ventures, the Stelmach government will order the new Alberta Enterprise Corporation to give money to venture-capital funds or other investment groups, which will themselves determine what firms and emerging Alberta technological initiatives get the money.
The budget also includes $20 million per year for consumer incentives or rebates that encourage power saving. The government will unveil those measures for residents and businesses in a new Energy Efficiency Act this spring.
“On energy development and the environment, we will pursue a leading role in responding to climate change, through carbon capture and storage, saving energy, and greener energy production,” Evans said in her speech.
Her Earth-Day budget boasts that the governing Tories are dramatically boosting the environment ministry’s budget to $403 million, but the 120-per-cent increase is mostly from the federal government ($52 million) and from corporate emitter fines ($155 million). Exactly how that money will be spent wasn’t included in today’s budget, but it’s designed to go into climate-change research and tech development and demonstration projects.
The lions share is widely expected to be headed towards the promising but expensive carbon-capture technology.
With files from Jason Markusoff
[email protected]
© (c) CanWest MediaWorks Publications Inc.
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