I don't get it...

from CNews:

LETHBRIDGE, Alta. (CP) - Every man, woman and child in Alberta will get $400 from the province's unbudgeted surplus, the Alberta government announced Tuesday.

[snip]

Etmanski said the money will not be subject to provincial taxes, though she added it has not yet been worked out with the federal government whether it can be exempt there, as well.

Now, if I understand it correctly, we were getting the rebates to make sure the feds didn't get their grubby hands on it... Am I wrong with that?

Does the Klein govt. really think that the feds will let us have it tax free? What about the GST we pay on the stuff we buy with the cash?

It would seem that this little adventure is going to be nothing more than a scheme to transfer cash TO the feds through you, the Alberta citizen...

The quick math looks like this:

$400.00
- $100.00 (25% average income tax) - to the feds
= $300.00
-$ 20.00 GST that would be added to $280.00 (to equal $300.00)
= $280.00 for you, the tax payer

Lets see what the feds get:

$120.00 taxes
X 3,000,000.00 Alberta residents
= $360,000,000.00 transfered to the feds through you.

If Klein wishes to follow through on this foolish adventure, my $280.00 is going to go to the Alberta Alliance Party.

Question: Why are they not giving us a tax break instead?

You can contact your MLA through here. Ask them. Let them know how you feel about this little cash transfer scheme...