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Alberta must bring in a harmonized sales tax.

This is the conclusion reached by numerous scholars, if sometimes reluctantly, who have carefully examined the facts. There is simply no realistic alternative if the province hopes to return to a balanced budget and pay for necessary services.

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In the past, the Alberta government has relied too heavily on oil royalties to balance its budget. Those days are gone, likely forever. But, even were they to return, such royalties should be part of a long term savings, investment, and development strategy, and not used to fund ongoing programs as done by previous governments.

There are only two ways to deal with Alberta’s fiscal gap. The first is massive cuts to government expenditures. All of us support greater efficiency where it can be found, but we believe it is wrong to suggest — as some continue to do — that cuts alone can solve the problem.

Alberta’s public spending overall is similar to other provinces. To balance the budget solely by spending cuts would drive Alberta’s health, education, justice, and other programs to levels far below even the poorest of other provinces, and would deepen Alberta’s current fiscal difficulties while crippling future prospects.