Alberta
Albertans to vote on senators, equalization, daylight saving time
Albertans will have an opportunity to have their say on equalization and daylight saving time and elect nominees to the Senate when they vote in the fall municipal elections.
In addition to voting for Senate nominees, Albertans will be asked to vote on these two provincial topics on Oct. 18, in conjunction with the municipal elections:
- Equalization payments – Should the principle of making equalization payments be removed from the Constitution?
- Daylight saving time – Should Alberta end the practice of changing our clocks twice a year?
“Alberta has a long and proud tradition of grassroots, direct democracy. We will renew that tradition this fall. I encourage all Albertans to get engaged on these important issues and I look forward to taking part in the debate this fall.”
Equalization
Over the last 25 years, Albertans have contributed more than $400 billion more to the nation in tax dollars than they have received in federal spending. Albertans make an immense contribution to equalization through federal tax contributions, which are transferred by the federal government to other provinces for programs and services. The current program has many issues, including a formula that requires it to grow automatically with Canada’s economy, even if contributing provinces like Alberta are experiencing immense economic challenges.
Daylight saving time
Across Canada and the United States, more governments are bringing forward legislation to move to permanent daylight saving time, also known as summer hours. In 2019, Service Alberta asked Albertans if they thought we should make a similar shift. More than 141,000 Albertans responded, of which 91 per cent were in favour of year-round summer hours.
“Changing our clocks twice a year is something that every Albertan has an opinion on. As Alberta first adopted daylight saving time following a referendum in 1971, we owe it to Albertans to give them the same opportunity to make their voices heard now that we are considering another change.”
Senate elections
Along with the municipal elections and the two referendum questions this fall, Albertans will elect three Senate nominees – one for each of the two current vacancies and one in case of early retirement.
The Senate nominee election enhances democracy in the province by allowing Albertans to choose the individuals who will best represent them in Parliament. Having representatives elected by Albertans would increase senators’ accountability to Alberta voters to defend the province’s interests.
Provincial police and pension
For the topics of creating an Alberta Police Service and Alberta Pension Plan, further analysis and work are underway before next steps are determined.
“Through the Fair Deal Panel, Albertans who are policed by the RCMP said that they want to see Alberta build its own provincial police service to improve policing in their communities. We are continuing to study what this could look like and how it could improve the safety and security of Albertans and their property, as part of making an informed decision on the next steps.”
“The potential creation of an Alberta Pension Plan would be a significant decision for Albertans. As such, we are continuing the important work of completing an actuarial, economic and structural analysis so Albertans can make an educated and well-informed choice, and their questions and concerns can be adequately addressed. We look forward to putting this important decision on the table when the time is right.”
Quick facts
- The equalization question will be: “Should Section 36(2) of the Constitution Act, 1982 –Parliament and the Government of Canada’s commitment to the principle of making equalization payments – be removed from the Constitution?”
- Between 2014 and 2019 alone, Albertans made a net contribution of more than $100 billion to the federal government through federal taxes that helped build critical infrastructure.
- Alberta has not received an equalization payment since the 1964-65 fiscal year.
- The question on daylight saving time will be finalized this summer.
- During 2019 and 2020, legislation was tabled in British Columbia and Ontario to move to summer hours all year. These changes have yet to be implemented.
- In March 2020, the Yukon stopped changing their clocks and adopted Pacific daylight time year-round.
- Since 2018, 17 American states have passed legislation to move to summer hours (daylight saving time) permanently and more states are debating the topic. However, in the United States, federal approval is required to enact the change.
- Saskatchewan, Arizona and Hawaii do not change their clocks twice a year.
- The Government of Alberta would provide names of elected Senate nominees to the prime minister for consideration when filling Senate vacancies.
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:
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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