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Alberta

Alberta government can deliver tax cut by ending corporate welfare

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4 minute read

From the Fraser Institute

By Tegan Hill

In a recent CBC interview, Premier Danielle Smith said she would “love to be able to accelerate our tax cut,” referring to her campaign promise to create a new 8 per cent tax bracket for personal income below $60,000, before adding that her government might not be able to maintain a balanced budget and introduce the cut. Fortunately, there’s a way Smith could achieve both: eliminate corporate welfare.

First, some background on Alberta’s recent tax changes.

In 2015, the provincial NDP government replaced Alberta’s single personal income tax rate of 10 per cent with a five-bracket system including a bottom rate of 10 per cent and a top rate of 15 per cent. Due to this change (and tax changes at the federal level, which increased the top federal income tax rate from 29 per cent to 33 per cent), Albertans faced significantly higher personal income tax rates.

Smith’s proposed tax cut would reduce Alberta’s bottom rate from 10 per cent to 8 per cent and is expected to save Albertans earning $60,000 or more $760 annually. While this change would fail to restore Alberta’s previous tax advantage, it would be a step in the right direction.

But due to fear of incurring a budget deficit, Smith has delayed fully implementing the $1.4 billion tax cut until 2027, contingent on the government being able to maintain a balanced budget.

Which takes us back to corporate welfare.

In 2019, after adjusting for inflation, the Alberta government spent $2.4 billion on subsidies to select businesses and industries. (In 2021, the latest year of available data, it spent $3.3 billion, however the pandemic may have contributed to this number.) And that’s not counting other forms of government handouts such as loan guarantees, direct investment and regulatory privileges for particular firms or industries. Put simply, eliminating corporate welfare would be more than enough to offset Smith’s proposed tax cut, which she promised Albertans in 2023.

Moreover, a significant body of research shows that corporate welfare fails to generate widespread economic benefits. Think of it this way; if businesses that receive subsidies were viable without subsidies, they wouldn’t need government handouts. Moreover, the government must impose higher tax rates on everyone else to pay for these subsidies. Higher taxes discourage productive activity, including business investment, which fuels economic growth. And the higher the rates, the more economic activity they discourage. Put simply, subsidies depress economic activity in some parts of an economy to encourage it in others.

For the same reason, corporate welfare also typically fails to generate new jobs on net. Indeed, while subsidies may create jobs in one specific industry, they pull those jobs away from other sectors that are likely more productive because they don’t need the subsidy.

The Smith government is hesitant to introduce Alberta’s tax cut if it can’t maintain a balanced budget, but if the government eliminates corporate welfare, it can avoid red ink while also fulfilling a promise it made to Alberta workers.

Tegan Hill

Director, Alberta Policy, Fraser Institute

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Alberta

Alberta school boards required to meet new standards for school library materials with regard to sexual content

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Alberta’s government has introduced new standards to ensure school library materials are age-appropriate.

School libraries should be safe and supportive places where students can learn and explore without being exposed to inappropriate sexual content. However, in the absence of a consistent standard for selecting age-appropriate library materials, school boards have taken different approaches, leading to concerns about safeguards in place.

In response to these concerns, and informed by feedback from education partners and the public, Alberta’s government has created standards to provide school boards with clear direction on the selection, availability and access to school library materials, such as books.

“Our actions to ensure that materials in school libraries don’t expose children to sexual content were never about banning books. These new standards are to ensure that school boards have clear guidance to ensure age-appropriate access to school library materials, while reflecting the values and priorities of Albertans.”

Demetrios Nicolaides, Minister of Education and Childcare

The new standards set clear expectations for school library materials with regard to sexual content and require school boards to implement policies to support these standards.

Standards for school library materials

Under the new standards, school libraries are not permitted to include library materials containing explicit sexual content. Non-explicit sexual content may be accessible to students in Grade 10 and above, provided it is age-appropriate.

“Protecting kids from explicit content is common sense. LGBTQ youth, like all children, deserve to see themselves in stories that are age-appropriate, supportive and affirming – not in material that sexualizes or confuses them.”

Blaine Badiuk, education and LGBTQ advocate

School boards must also regularly review their school library collections, publish a full list of available materials and ensure that a staff member supervises students’ access to school library materials. School boards will have to remove any materials with explicit sexual content from their school libraries by October 1.

School board policies and procedures

All school boards must have publicly available policies that align with the new standards for selecting and managing library materials by January 1, 2026. School boards can either create new policies or update existing ones to meet these requirements.

These policies must outline how school library materials are selected and reviewed, how staff supervise students’ access throughout the school day, and how a student, parent, school board employee or other member of the school community can request a review or removal of materials in the school library. School boards are also required to clearly communicate these policies to employees, students and parents before January 2026.

“A robust, grade- and age-appropriate library catalogue is vital for student success. We welcome the ministry’s initiative to establish consistent standards and appreciate the ongoing consultation to help craft a plan that will serve our families and communities well.”

Holly Bilton, trustee, Chinook’s Edge School Division

“Red Deer Public Schools welcomes the new provincial standards for school library materials. Our division is committed to maintaining welcoming, respectful learning spaces where students can grow and thrive. Under the new standards for school libraries, we remain dedicated to providing learning resources that reflect our values and support student success.”

Nicole Buchanan, chair, Red Deer Public Schools

Quick facts

  • The new standards will apply to public, separate, francophone, charter and independent schools.
  • The ministerial order does not apply to municipal libraries located within schools or materials selected for use by teachers as learning and teaching resources.
  • From May 26 to June 6, almost 80,000 people completed an online survey to provide feedback on the creation of consistent standards to ensure the age-appropriateness of materials available to students in school libraries.

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Alberta

Fourteen regional advisory councils will shape health care planning and delivery in Alberta

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Regional health councils give Albertans a voice

Albertans want a health care system that reflects where they live and adapts to the unique needs of their communities. As part of the province’s health care refocus, Alberta’s government committed to strengthening community voices by providing more opportunities for Albertans to bring forward their local priorities and offer input on how to improve the system.

The regional advisory councils, made up of 150 members from 71 communities, will advise Alberta’s four health ministries and the newly refocused health agencies: Primary Care Alberta, Acute Care Alberta, Assisted Living Alberta and Recovery Alberta. Each council will explore solutions to local challenges and identify opportunities for the health system to better support community decision-making.

“By hearing first-hand community feedback directly, we can build a system that is more responsive, more inclusive and ultimately more effective for everyoneI am looking forward to hearing the councils’ insights, perspectives and solutions to improve health care in all corners of our province.”

Adriana LaGrange, Minister of Primary and Preventative Health Services

“Regional advisory councils will strengthen acute care by giving communities a direct voice. Their insights will help us address local needs, improve patient outcomes and ensure timely access to hospital services.”

Matt Jones, Minister of Hospital and Surgical Health Services

“A ‘one-size-fits-all’ approach does not address unique regional needs when it comes to mental health and addiction challenges. These councils will help us hear directly from communities, allowing us to tailor supports and services to meet the needs of Albertans where they are.”

Rick Wilson, Minister of Mental Health and Addiction

“Every community has unique needs, especially when it comes to seniors and vulnerable populations. These regional advisory councils will help us better understand those needs and ensure that assisted living services are shaped by the people who rely on them.”

Jason Nixon, Minister of Assisted Living and Social Services

Members include Albertans from all walks of life, health care workers, community leaders, Indigenous and municipal representatives, and others with a strong tie to their region. About one-third of members work in health care, and more than half of the council chairs are health professionals. Almost one-quarter are elected municipal officials, including 10 serving as chairs or vice-chairs. Ten councils also include a representative from a local health foundation.

Council members will share local and regional perspectives on health care services, planning and priorities to help ensure decisions reflect the realities of their communities. By engaging with residents, providers and organizations, they will gather feedback, identify challenges and bring forward ideas that may not otherwise reach government.

Through collaboration and community-informed solutions, members will help make the health system more responsive, accessible and better able to meet the needs of Albertans across the province.

“As Primary Care Alberta works to improve access to primary health care services and programs across Alberta, we are grateful to have the opportunity to tap into a dedicated group of community leaders and representatives. These people know their communities and local needs, and we look forward to learning from their experiences and knowledge as we shape the future of primary care in Alberta.”

Kim Simmonds, CEO, Primary Care Alberta

“The regional advisory councils will help to bring forward the voices of patients, families and front-line providers from every corner of Alberta. Their insights will help us plan smarter and deliver care that’s timely, effective and truly local. We look forward to working closely with them to strengthen hospital and surgical services across the province.”

Dr. Chris Eagle, interim CEO, Acute Care Alberta

“Nobody understands the health care challenges unique to a community better than the people who live there. The regional health advisory councils are made up of those living and working on the front lines across the province, ensuring we are getting the perspective of Albertans most affected by our health care system.”

Dr. Sayeh Zielke, CEO, Assisted Living Alberta

“Alongside Recovery Alberta’s staff and physician team, these regional advisory councils will build upon the high standard of mental health, addiction and correctional health services delivered in Alberta.”

Kerry Bales, CEO, Recovery Alberta

Indigenous Advisory Council

Alberta’s government continues to work directly with Indigenous leaders across the province to establish the Indigenous Advisory Council to strengthen health care services for First Nation, Métis and Inuit communities.

With up to 22 members, including Indigenous health care workers, community leaders and individuals receiving health care services, the council will represent diverse perspectives across Alberta. Members will provide community perspectives about clinical service planning, capital projects, workforce development and cultural integration in health care.

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