Alberta
Alberta government can soften blow of Ottawa’s capital gains tax hike
From the Fraser Institute
By Tegan Hill
Several wealthy and successful industrialized countries (Switzerland, New Zealand, Singapore) and several U.S. states (including Texas, Alaska, South Dakota, Wyoming) impose no capital gains taxes. Of course, Alberta competes with these U.S. states for investment.
Earlier this year, the Trudeau government increased the inclusion rate on capital gains over $250,000 for individuals and on all capital gains realized by corporations and trusts. This tax hike will almost surely have a negative impact on investment and entrepreneurship, but the Smith government can lessen the blow in Alberta.
In simple terms, capital is money invested in an asset—e.g. a business, factory, intellectual property, stock or bond—to create economic benefit. A capital gain occurs when that investment is sold for more than its original purchase price.
Prior to the tax hike, half the value of a capital gain (50 per cent) was taxed by the government. Trudeau increased this “inclusion rate” to 66 per cent—and that has real economic consequences.
Why? Because capital gains taxes impose comparatively large costs on the economy by reducing the reward from productive activities such as savings, investment, risk-taking and entrepreneurship, which are essential for strong economic growth. Capital taxes are among the most economically damaging forms of taxation for this very reason—they reduce the incentive to innovate and invest.
Take an entrepreneur, for example, who’s deciding whether or not to risk their own capital to provide (and profit from) a new technology, product or service. The higher the capital gains tax, the lower the potential reward from this investment, which means they will be less inclined to make the investment or perhaps undertake the investment elsewhere (another country, for example) in a more tax-friendly environment. Less investment means less innovation, job creation, wage growth and ultimately lower living standards. In other words, Trudeau’s capital gains tax hike will not only hurt Canadians with capital gains but other Canadians who benefit from the knockoff effects of investment.
Largely due to this problem, several wealthy and successful industrialized countries (Switzerland, New Zealand, Singapore) and several U.S. states (including Texas, Alaska, South Dakota, Wyoming) impose no capital gains taxes. Of course, Alberta competes with these U.S. states for investment.
Previous federal governments also understood the disincentive that comes with capital gains taxes. In 2000, the Liberal government of Jean Chretien meaningfully reduced the tax rate applied to capital gains stating that we must “introduce tax measures that encourage entrepreneurship and risk taking.”
Today, fortunately, the Smith government can take action.
When governments tax your capital gain, they include a share of the gain in your personal income and it is taxed at your personal income tax rate. The Alberta government could simply add a step in the tax return process for Albertans to remove capital gains from the provincial income tax calculation. As a result, the capital gains tax would only apply to the federal portion of your income taxes.
The Alberta government doesn’t have to sit back and accept Trudeau’s capital gains tax hike. Eliminating capital gains taxes from the provincial income tax in Alberta would send a powerful message to potential entrepreneurs, investors and businessowners that the province is open for business—and that benefits all Albertans.
Author:
Alberta
Premier Danielle Smith hints Alberta may begin ‘path’ toward greater autonomy after Mark Carney’s win
From LifeSiteNews
Alberta’s premier said her government will be holding a special caucus meeting on Friday to discuss Alberta’s independence.
Alberta Premier Danielle Smith hinted her province could soon consider taking serious steps toward greater autonomy from Canada in light of Mark Carney and the Liberal Party winning yesterday’s federal election.
In a statement posted to her social media channels today, Smith, who is head of Alberta’s governing United Conservative Party, warned that “In the weeks and months ahead, Albertans will have an opportunity to discuss our province’s future, assess various options for strengthening and protecting our province against future hostile acts from Ottawa, and to ultimately choose a path forward.”
“As Premier, I will facilitate and lead this discussion and process with the sincere hope of securing a prosperous future for our province within a united Canada that respects our province’s constitutional rights, facilitates rather than blocks the development and export of our abundant resources, and treats us as a valued and respected partner within confederation,” she noted.
While Smith stopped short of saying that Alberta would consider triggering a referendum on independence from Canada, she did say her government will be holding a “special caucus meeting this Friday to discuss this matter further.”
“I will have more to say after that meeting is concluded,” she noted.
Smith’s warning comes at the same time some pre-election polls have shown Alberta’s independence from Canada sentiment at just over 30 percent.
Monday’s election saw Liberal leader Mark Carney beat out Conservative rival Pierre Poilievre, who also lost his seat. The Conservatives managed to pick up over 20 new seats, however, and Poilievre has vowed to stay on as party leader, for now.
In Alberta, almost all of the seats save two at press time went to conservatives.
Carney, like former Prime Minister Justin Trudeau before him, said he is opposed to new pipeline projects that would allow Alberta oil and gas to be unleashed. Also, his green agenda, like Trudeau’s, is at odds with Alberta’s main economic driver, its oil and gas industry.
The federal government under Trudeau pushed since 2015 a radical environmental agenda similar to the agendas being pushed the World Economic Forum’s “Great Reset” and the United Nations “Sustainable Development Goals.”
The Carney government has also pledged to mandate that all new cars and trucks by 2035 be electric, effectively banning the sale of new gasoline- or diesel-only powered vehicles after that year.
The reduction and eventual elimination of the use of so-called “fossil fuels” and a transition to unreliable “green” energy has also been pushed by the World Economic Forum (WEF) – the globalist group behind the socialist “Great Reset” agenda – an organization in which Trudeau and some of his cabinet are involved.
Smith: ‘I will not permit the status quo to continue’
In her statement, Smith noted that she invited Carney to “immediately commence working with our government to reset the relationship between Ottawa and Alberta with meaningful action rather than hollow rhetoric.”
She noted that a large majority of Albertans are “deeply frustrated that the same government that overtly attacked our provincial economy almost unabated for the past 10 years has been returned to government.”
Smith then promised that she would “not permit the status quo to continue.”
“Albertans are proud Canadians that want this nation to be strong, prosperous, and united, but we will no longer tolerate having our industries threatened and our resources landlocked by Ottawa,” she said.
Smith praised Poilievre for empowering “Albertans and our energy sector as a cornerstone of his campaign.”
Smith was against forced COVID jabs, and her United Conservative government has in recent months banned men from competing in women’s sports and passed a bill banning so-called “top and bottom” surgeries for minors as well as other extreme forms of transgender ideology.
Alberta
Hours after Liberal election win, Alberta Prosperity Project drumming up interest in referendum
News release from the Alberta Prosperity Project
Carney’s In. Now what?You’ve been paying attention. You understand this is really bad. Worse than that, it’s dangerous. The country has somehow chosen several more years of a decade-long Trudeau Travesty…on steroids. Because this new Prime Minister has a three digit IQ, deep and questionable connections and a momentum to accelerate the further dis-integration of a nation we all once proudly belonged to. It’s untrue to say the country is dying. But it’s also not a stretch to say it’s on life support. The era of Carney Carnage is here. While every province will experience it, there’s no secret he’s placed an extra big bulls-eye on Alberta. It’s not personal, it’s financial.His plan includes continuing to limit three of Alberta’s most prosperous sectors: energy, agriculture and, by extension, innovation. To acknowledge this requires we abandon our sense of romanticized national nostalgia. Nostalgia is a trap that prevents us from assessing the reality we exist in. For instance, GDP is considered the financial heartbeat of a country. Over the past decade of Liberal Leadership, the national GDP has been an abysmal 1.1%. By relatable comparison, Mexico was 4%, the UK was 6%, Australia had 8% growth and the US was a whopping 19%. That’s great information for an economist, but what does it mean to your pay cheque? The everyday impact on the average Albertan —say, a teacher or mechanic— of 10 long years of 1% GDP means rent’s up at least 25%, a trip to the grocery store always stings, and driving an older car is the norm because an upgrade is out of reach. Does this sound like your reality? We aren’t starving, but we’re not thriving, either.Does this make sense for 4.5 million people living with the third most abundant energy deposits in the world? There’s an absurdity to the situation Albertans find themselves in. It’s akin to being chronically dehydrated while having a fresh water spring in the backyard. The life you’ve invested for, the future you believed was ahead, isn’t happening. If Alberta stays on this path. So what can you, as an Albertan, do about it? This Fall, we’ll be provided an opportunity. A life raft in the form of a referendum. It requires curiosity, imagination and courage to step into it, but the option will be there — a once in a lifetime shot at prosperity for you and your family: Alberta Sovereignty. A successful bid means Albertans can finally paddle out of the perilous economic current that’s battered us for ten long years. Alberta has the resources, talent and spirit of collaboration to create a prosperous future for our families and communities. |
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WHAT CAN ALBERTANS DO?Register Your Intent To Vote “YES” |
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