Alberta
Standing for Alberta – The Fight for a Fair Deal Within Canada
A new organization called Fairness Alberta has recently joined the ongoing national conversation discussing Alberta’s role in the Canadian landscape as a major contributor to the wealth and general prosperity of the country. Arguments surrounding the value of Alberta, which position it as Canada’s neglected province, have long been a contentious topic at the regional and national levels.
In 2016, Conservative MP Michelle Rempel famously made waves at parliament when she accused the federal government of treating Alberta like a “fart in the room, that no one wants to acknowledge or talk about” (1).
In October 2019, the results of the Canadian Federal Election saw the outrage of many across western Canada, giving rise to the popular Western Exit, better known as WEXIT, movement. Based on fundamental principles of economic liberty and social stability, WEXIT advocates for Western Canadian sovereignty through the secession of the western provinces from the rest of the country.
In January 2020, Alberta Proud hosted The Value of Alberta: A One-Day Conference on Alberta’s Future, featuring keynote topics such as “The Economic Value of Alberta”, “Is there a Canadian Manifesto without Alberta?” and “Reasons Alberta Struggles to fit and Where we go Next”.
On Monday, May 25, Fairness Alberta joined the ranks of Albertans dissatisfied with the federal government’s treatment of Alberta, seeking to take a stand against biased policies and regulations. This Proudly Canadian, Fiercely Albertan organization operates on non-partisan, factual fundamentals, seeking not to deepen the divide between Alberta and the rest of the country, but to bridge the gap through education, discussion and understanding.
Bill Bewick, Executive Director Fairness Alberta, brings extensive experience to the organization with a PhD in Political Science from Michigan State University and years spent working as a political consultant, as well as within the Alberta legislature. “It is entirely outside of our mandate to speculate about separatism,” says Bewick of the WEXIT movement, “our goal is to get a better deal for Alberta, within Canada.”
At the core of their organization, Fairness Alberta believes Canadians should recognize how a prosperous Alberta benefits Canada as a whole. According to Bewick, FA founders and members share a fundamental frustration regarding “how little people and politicians seem to understand about the amount of money leaving Alberta every year.” The Alberta Transfer Meter, operated by Fairness Alberta, features a running total of Alberta’s net contributions to other provinces in the form of federal taxes and EI premiums over the last two decades. According to the Meter, Albertans have seen an estimated total of $324 billion of their tax dollars spent in other Canadian provinces from the year 2000 to 2019.
Dedicated to informing the rest of the country about “the importance of Alberta’s contributions to Canada, and about the unfair nature of various federal policies, actions, and decisions from Ottawa”, Fairness Alberta hopes to help level the Canadian playing field in regards to fiscal, trade, energy, procurement and infrastructure issues.
“Alberta’s contributions are taken for granted,” says Bewick, “We want to encourage investment in a place that has shown high levels of productivity in the past and has a lot of potential for the future.” In achieving this goal, Bewick adds, “we really think education and open discussion are critical in reaching a common ground and having any significant change take place.”
Since their official launch, Fairness Alberta has experienced positive pick-up and feedback from the Alberta public, and is committed to continued growth and expansion throughout the rest of Canada. Dialogue based and donation driven, Bewick encourages the public to reach out, share feedback and join the conversation surrounding Alberta’s future.
For more information on Fairness Alberta and how to get involved, visit https://www.fairnessalberta.ca.
For more stories, visit Todayville Calgary.
Alberta
Alberta government should eliminate corporate welfare to generate benefits for Albertans
From the Fraser Institute
By Spencer Gudewill and Tegan Hill
Last November, Premier Danielle Smith announced that her government will give up to $1.8 billion in subsidies to Dow Chemicals, which plans to expand a petrochemical project northeast of Edmonton. In other words, $1.8 billion in corporate welfare.
And this is just one example of corporate welfare paid for by Albertans.
According to a recent study published by the Fraser Institute, from 2007 to 2021, the latest year of available data, the Alberta government spent $31.0 billion (inflation-adjusted) on subsidies (a.k.a. corporate welfare) to select firms and businesses, purportedly to help Albertans. And this number excludes other forms of government handouts such as loan guarantees, direct investment and regulatory or tax privileges for particular firms and industries. So the total cost of corporate welfare in Alberta is likely much higher.
Why should Albertans care?
First off, there’s little evidence that corporate welfare generates widespread economic growth or jobs. In fact, evidence suggests the contrary—that subsidies result in a net loss to the economy by shifting resources to less productive sectors or locations (what economists call the “substitution effect”) and/or by keeping businesses alive that are otherwise economically unviable (i.e. “zombie companies”). This misallocation of resources leads to a less efficient, less productive and less prosperous Alberta.
And there are other costs to corporate welfare.
For example, between 2007 and 2019 (the latest year of pre-COVID data), every year on average the Alberta government spent 35 cents (out of every dollar of business income tax revenue it collected) on corporate welfare. Given that workers bear the burden of more than half of any business income tax indirectly through lower wages, if the government reduced business income taxes rather than spend money on corporate welfare, workers could benefit.
Moreover, Premier Smith failed in last month’s provincial budget to provide promised personal income tax relief and create a lower tax bracket for incomes below $60,000 to provide $760 in annual savings for Albertans (on average). But in 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on corporate welfare—equivalent to $1,034 per tax filer. Clearly, instead of subsidizing select businesses, the Smith government could have kept its promise to lower personal income taxes.
Finally, there’s the Heritage Fund, which the Alberta government created almost 50 years ago to save a share of the province’s resource wealth for the future.
In her 2024 budget, Premier Smith earmarked $2.0 billion for the Heritage Fund this fiscal year—almost the exact amount spent on corporate welfare each year (on average) between 2007 and 2019. Put another way, the Alberta government could save twice as much in the Heritage Fund in 2024/25 if it ended corporate welfare, which would help Premier Smith keep her promise to build up the Heritage Fund to between $250 billion and $400 billion by 2050.
By eliminating corporate welfare, the Smith government can create fiscal room to reduce personal and business income taxes, or save more in the Heritage Fund. Any of these options will benefit Albertans far more than wasteful billion-dollar subsidies to favoured firms.
Authors:
Alberta
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