Alberta
Alberta workers now eligible for unpaid job-protected leave – Alberta COVID-19 update (April 6)
From the Province of Alberta
Supporting Albertans during COVID-19
This is an extremely difficult time for all Albertans and temporary rules will be in place to provide job protection for workers and flexibility for employers during this pandemic. Following direction and recommendations provided by the chief medical officer of health, employers have had to adjust operations significantly. The Government of Alberta is taking immediate action to allow employers to appropriately respond to public health measures and at the same time allow employees to remain attached to jobs and have the ability to access federal assistance programs.
Changes for employees
Changes for employees and employers
Changes for employers
DurationThe changes above take effect immediately and will be in place as long as government determines it is needed and the public health emergency order remains. Alberta has a comprehensive response to COVID-19 including measures to enhance social distancing, screening and testing. Financial supports are helping Alberta families and businesses. |
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
Official statement from Premier Danielle Smith and Energy Minister Brian Jean on the start-up of the Trans Mountain Pipeline
-
Opinion2 days ago
Climate Murder? Media Picks Up Novel Legal Theory Suggesting Big Oil Is Homicidal
-
Energy1 day ago
Net Zero’s days are numbered? Why Europeans are souring on the climate agenda
-
Bruce Dowbiggin2 days ago
It Gets Late Early These Days: Time To Bounce Biden & Trudeau?
-
Addictions2 days ago
City of Toronto asks Trudeau gov’t to decriminalize hard drugs despite policy’s failure in BC
-
Opinion1 day ago
Quebec’s ban on gender-neutral bathrooms in schools is good news
-
Energy1 day ago
Biden Has Taken More Than 200 Actions Against Domestic Oil, New Report Says
-
Energy1 day ago
Houses passes bill to protect domestic oil production, protect Iñupiat community
-
Automotive2 days ago
Vehicle monitoring software could soon use ‘kill switch’ under the guise of ‘safety’