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May 23, 2012

Alberta MLAs' salary to be fully taxed


Alberta MLA's returning to the legislature Wednesday will be paying income tax on their entire salary.
A report written by retired Supreme Court Justice John Major recommended the province retain the tax-free portion of their salary.
But the government is rejecting that.
People feel politicians should pay taxes like everyone else, said government house leader Dave Hancock.
"The public has seemed to be fairly unanimous in the view that they would just as soon we had a salary and pay tax on the whole salary," he said.
Major called the tax-free amount the most misunderstood and contentious of all his recommendations.
Without the allowance the province will make up the difference in salary from its own budget and then lose the $2 million in taxes to Revenue Canada.
Major insisted keeping the tax-free allowance shouldn't make MLA pay any less transparent.
But Hancock said paying more tax to the federal government is "a small price to pay for transparency."
MLAs will get a base salary of $134,000, with no additional money for sitting on committees.
Premier Alison Redford has already rejected Major's suggestion that the premier's salary jump from just over $200,000 a year to $335,000 within the next two years.
All other recommendations will go before a committee of the legislature for approval.

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