In 2019-20, AB Health spent $20.9 billion. Personal income tax revenue was $11.2 billion. Your taxes do not come anywhere near to paying for health care and have not since the early 2000s. So how is the bill paid?
In 2019-20 the feds contributed $4.7 billion via the Canada Health Transfer but that still leaves us short. It took most of non-renewable resource revenues ($5.0 of $5.9 billion) to finally cover the health bill.
There is similarly unpleasant arithmetic in all provinces. Good public policy requires questioning how health dollars are spent and being realistic about feasible ways of paying for health.
Taxpayers are squeezed by both approaches. It is in their interests for their government to identify the right balance between cost savings and increases in the taxes they will need to pay.
To rely solely on cuts or solely on tax increases is not likely the right answer. We need to stick-handle through some very difficult trade-offs. But it needs to be done because there is still education, social assistance, and other programs we need to fund with our taxes.
For those wondering, physician compensation was $5.4 billion in 2019-20. Half of personal income tax revenue went to physician compensation.
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