Public demands

Alberta had a provincial sales tax in 1936 and 1937 – a 3-per-cent hit called a tax on “ultimate purchases.”

It was part of a broad set of unexpected policies sprung on the public by the radical Social Credit government under Bill Aberhart after the 1935 election. Public outrage forced the Socreds to rescind it.

Aberhart had promised voters a monthly $25 “basic dividend” – equivalent to $450 in 2016 currency – but introduced a sales tax instead. And no dividend.

Not that Alberta was not already taxing goods. It collected revenue on the sales of furs, amusements, coal, electricity, pipelines, betting, telephones, land, tobacco and liquor – the “sin” taxes. And on gasoline.

The province languished in debt for the rest of the Dirty Thirties, running deficit budgets well into the 1940s.

Petroleum is the reason Alberta currently has no PST.

The discovery of massive quantities of crude oil in 1936 in Turner Valley, southwest of Calgary, set Alberta on its way to being, per capita, the richest economy in Canada….

For generations, the people of Alberta have given their elected officials a clear mandate: Play the petroleum-income lottery instead of taxing us fairly. And it has worked – most of the time.

What evidence does this article provide of voter influence? How do you think voter attitudes have influenced election results over time?

Finch, D. (May 20, 2016). Why Alberta deserves a provincial sales tax. The Globe and Mail.