Alberta
Alberta government names five new members to Preston Manning-led COVID review panel
By Dean Bennett in Edmonton
The Alberta government has named five members to a COVID-19 review panel led by former Reform Party leader Preston Manning, one of whom was recently fired along with the rest of the governing board of Alberta Health Services.
Jack Mintz joins Dr. Martha Fulford, Michel Kelly-Gagnon, Dr. Rob Tanguay and Jack Major on the Public Health Emergencies Governance Review panel.
“Albertans can have confidence Alberta’s pandemic response will be reviewed by these medical, policy, legal and economic experts so our province can better respond to the next public health emergency,” Smith said in a statement Friday.
Mintz is the president’s fellow at the University of Calgary’s School of Public Policy and advises and writes on tax, business and health policy.
He and the board were fired by Smith in November. She said they failed Albertans during the pandemic by failing to scale up hospital capacity as promised, forcing the government to impose what Smith has termed freedom-busting health restrictions.
The board members were replaced by an administrator. In an opinion piece published in the Financial Post in November, Mintz wrote that he was OK with the firing because the changes represent a necessary jump-start to achieve true reform in health-care delivery.
Major is a former Supreme Court judge and Kelly-Gagnon is president of the Montreal Economic Institute.
Tanguay is a psychiatrist and University of Calgary professor focusing on disability and rehabilitation.
Fulford is chief of medicine at McMaster University Medical Centre in Hamilton and focuses on infectious diseases. She challenged the efficacy of some health restrictions during the pandemic.
The panel is not only looking at government decision-making, but also its effects on jobs, children, mental health and protection of rights and freedoms. It is to report back by Nov. 15.
The bulk of the panel’s work will be reviewing legislation, regulations and ministerial orders, but it will also take feedback online.
The budget is $2 million. Manning, who was announced as chair a month ago, is to be paid $253,000.
Manning and Smith have been critical of government-imposed health restrictions such as masking, gathering rules and vaccine mandates during the pandemic.
Smith has questioned the efficacy of the methods and their long-term effects on household incomes, the economy and mental health. She has promised health restrictions and vaccine mandates would have no role in any future COVID-19 response in Alberta.
The Opposition New Democrats have labelled the panel a political sop to Smith’s far-right supporters angry over COVID-19 restrictions, and have promised to cancel it should they win the May 29 provincial election.
“This panel is a brutal waste of Alberta taxpayers’ money,” said NDP health critic David Shepherd.
“Preston Manning has already reached his own conclusions, and based on the panellists, it looks like it’s headed toward whatever outcome Danielle Smith and the UCP are looking for. An Alberta NDP government will put an end to this sham panel.”
This report by The Canadian Press was first published Feb. 17, 2023.
Alberta
Alberta government should create flat 8% personal and business income tax rate in Alberta
From the Fraser Institute
By Tegan Hill
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America
Over the past decade, Alberta has gone from one of the most competitive tax jurisdictions in North America to one of the least competitive. And while the Smith government has promised to create a new 8 per cent tax bracket on personal income below $60,000, it simply isn’t enough to restore Alberta’s tax competitiveness. Instead, the government should institute a flat 8 per cent personal and business income tax rate.
Back in 2014, Alberta had a single 10 per cent personal and business income tax rate. As a result, it had the lowest top combined (federal and provincial/state) personal income tax rate and business income tax rate in North America. This was a powerful advantage that made Alberta an attractive place to start a business, work and invest.
In 2015, however, the provincial NDP government replaced the single personal income tax rate of 10 percent with a five-bracket system including a top rate of 15 per cent, so today Alberta has the 10th-highest personal income tax rate in North America. The government also increased Alberta’s 10 per cent business income tax rate to 12 per cent (although in 2019 the Kenney government began reducing the rate to today’s 8 per cent).
If the Smith government reversed the 2015 personal income tax rate increases and instituted a flat 8 per cent tax rate, it would help restore Alberta’s position as one of the lowest tax jurisdictions in North America, all while saving Alberta taxpayers $1,573 (on average) annually.
And a truly integrated flat tax system would not only apply a uniform tax 8 per cent rate to all sources of income (including personal and business), it would eliminate tax credits, deductions and exemptions, which reduce the cost of investments in certain areas, increasing the relative cost of investment in others. As a result, resources may go to areas where they are not most productive, leading to a less efficient allocation of resources than if these tax incentives did not exist.
Put differently, tax incentives can artificially change the relative attractiveness of goods and services leading to sub-optimal allocation. A flat tax system would not only improve tax efficiency by reducing these tax-based economic distortions, it would also reduce administration costs (expenses incurred by governments due to tax collection and enforcement regulations) and compliance costs (expenses incurred by individuals and businesses to comply with tax regulations).
Finally, a flat tax system would also help avoid negative incentives that come with a progressive marginal tax system. Currently, Albertans are taxed at higher rates as their income increases, which can discourage additional work, savings and investment. A flat tax system would maintain “progressivity” as the proportion of taxes paid would still increase with income, but minimize the disincentive to work more and earn more (increasing savings and investment) because Albertans would face the same tax rate regardless of how their income increases. In sum, flat tax systems encourage stronger economic growth, higher tax revenues and a more robust economy.
To stimulate strong economic growth and leave more money in the pockets of Albertans, the Smith government should go beyond its current commitment to create a new tax bracket on income under $60,000 and institute a flat 8 per cent personal and business income tax rate.
Author:
Alberta
Province to stop municipalities overcharging on utility bills
Making utility bills more affordableAlberta’s government is taking action to protect Alberta’s ratepayers by introducing legislation to lower and stabilize local access fees. Affordability is a top priority for Alberta’s government, with the cost of utilities being a large focus. By introducing legislation to help reduce the cost of utility bills, the government is continuing to follow through on its commitment to make life more affordable for Albertans. This is in addition to the new short-term measures to prevent spikes in electricity prices and will help ensure long-term affordability for Albertans’ basic household expenses.
Local access fees are functioning as a regressive municipal tax that consumers pay on their utility bills. It is unacceptable for municipalities to be raking in hundreds of millions in surplus revenue off the backs of Alberta’s ratepayers and cause their utility bills to be unpredictable costs by tying their fees to a variable rate. Calgarians paid $240 in local access fees on average in 2023, compared to the $75 on average in Edmonton, thanks to Calgary’s formula relying on a variable rate. This led to $186 million more in fees being collected by the City of Calgary than expected.
To protect Alberta’s ratepayers, the Government of Alberta is introducing the Utilities Affordability Statutes Amendment Act, 2024. If passed, this legislation would promote long-term affordability and predictability for utility bills by prohibiting the use of variable rates when calculating municipalities’ local access fees. Variable rates are highly volatile, which results in wildly fluctuating electricity bills. When municipalities use this rate to calculate their local access fees, it results in higher bills for Albertans and less certainty in families’ budgets. These proposed changes would standardize how municipal fees are calculated across the province, and align with most municipalities’ current formulas.
If passed, the Utilities Affordability Statutes Amendment Act, 2024 would prevent municipalities from attempting to take advantage of Alberta’s ratepayers in the future. It would amend sections of the Electric Utilities Act and Gas Utilities Act to ensure that the Alberta Utilities Commission has stronger regulatory oversight on how these municipal fees are calculated and applied, ensuring Alberta ratepayer’s best interests are protected.
If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities Act, Government Organizations Act and the Regulated Rate Option Stability Act to replace the terms “Regulated Rate Option”, “RRO”, and “Regulated Rate Provider” with “Rate of Last Resort” and “Rate of Last Resort Provider” as applicable. Quick facts
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