Alberta
Moving to single 8% provincial personal income tax rate would help restore the Alberta Advantage
From the Fraser Institute
Moving to a single eight per cent personal income tax rate for all working Albertans would dramatically improve the province’s competitiveness among
energy-producing jurisdictions, according to a new study published by the Fraser Institute, an independent, non-partisan Canadian public policy think-tank.
“It’s crucial to restore Alberta’s historic tax advantage and understanding how changes to personal income tax rates affect provincial revenues is critical for informed policy decisions,” said Ergete Ferede, Fraser Institute senior fellow and author of Revenue Effects of Tax Rate Changes in Alberta.
The report examines two potential tax reform scenarios and their impact on provincial revenue: an immediate adoption of an eight per cent single tax rate starting in 2025; and a gradual move to that same rate over three years.
An immediate switch to an eight per cent single personal income tax (PIT) rate would decrease PIT revenue by about $6.1 billion (a 35.6 per cent reduction) in the first year.
A gradual transition over three years would start with a smaller loss of $264 million (a 1.5 per cent reduction) in 2025 increasing to $6.9 billion (37.0 per cent reduction) by 2027. However, these estimates may overstate provincial revenue losses as they do not account for the potential positive economic effect of personal income tax reductions on other revenue sources.
Alberta’s current combined federal and provincial personal income tax rate stands at 48 per cent—ranking 10th highest out of 61 jurisdictions in North America—and is significantly higher than other energy-producing regions such as Texas or Wyoming. Implementing a single 8 per cent tax rate would help re-establish Alberta as a low-tax jurisdiction, lowering its rank to the 16th lowest among the 61.
“The potential to strengthen Alberta’s economic position through tax cuts must be considered along with the revenue implications for the government,” Ferede said.
Ergete Ferede
Alberta
Alberta providing additional $7 million to Grande Prairie to help transition to municipal police service
Supporting homegrown policing solutions
Alberta’s government is following through on a commitment to ensure that communities can pursue policing solutions that meet their needs and are supported in reaching their public safety goals. That’s why the province is supporting the City of Grande Prairie with an additional $7 million in funding as it transitions to a municipal police service, helping to advance a homegrown solution that meets the needs of the community.
This new funding reinforces and builds on the province’s initial $9.7 million two-year commitment to help the City of Grande Prairie meet its policing and public safety needs, following the city council’s decision in March 2023 to transition from the RCMP to a municipal police service.
“Alberta’s government will do whatever it takes to keep people safe. The City of Grande Prairie is pursuing a policing solution that’s right for the community and its residents, and Alberta’s government is behind them throughout the transition process. Albertans, regardless of where they live, deserve fast and reliable law enforcement where and when they need it. Our government remains committed to ensuring Alberta municipalities have their choice of policing provider.”
Since 2023, Grande Prairie has made significant progress in hiring officers and civilian staff, procuring equipment, and beginning the development of essential IT infrastructure for a municipal police service. This support from the province ensures that the city can keep the momentum of its transition going as it lays critical groundwork for the Grande Prairie Police Service (GPPS).
The funding will support the projected start-up costs associated with building and implementing the new service, including salaries, benefits, recruitment, equipment and training. The GPPS is expected to become the primary police service of jurisdiction for Grande Prairie in 2026.
Once provincial startup funding through the Grande Prairie Police Service Grant agreement ends, the city will absorb all operational costs associated with its new police service. The annual operating budget of the GPPS is projected to be less than those associated with policing services contracted through the RCMP.
“The City of Grande Prairie is thankful for this announcement and the ongoing funding and support from the provincial government as we transition to a municipal police service. The transition is on budget and on schedule and has already provided a positive impact on our community safety and valuable insights on the modernizations that will be achieved with a stand-alone municipal police service model.”
“With the ongoing support and funding from the Alberta government, we are creating a modern, community-oriented police service that reflects the unique needs of Grande Prairie. The Grande Prairie Police Service is quickly proving that a policing transition can be both effective and efficient.”
Key facts
- The projected total cost of establishing and implementing the GPPS is $19 million.
- The GPPS is expected to become the primary police of jurisdiction for Grande Prairie in 2026.
- Through the Indigenous and Municipal Police Transition Study Grant program, Alberta’s government delivered more than $2.2 million in funding to help 35 municipalities, 23 First Nations and eight Metis Settlements to explore ways to enhance their existing policing models as well as alternate options such as self-administered First Nations policing or standalone police services.
- Under Alberta’s Police Act, towns and cities with populations greater than 5,000 are responsible for their own policing and can form their own municipal police service, be part of a regional policing arrangement or contract with the federal government for RCMP policing services to meet their public safety needs.
Related news
- Alberta funds community policing in Grande Prairie (Feb 22, 2023)
From the Frontier Centre for Public Policy
By Lee Harding
In a fiery takedown of Alberta sovereigntists, Jann Arden may have poured gas on the sovereignty fire instead of dousing it. Lee Harding argues that her vulgar swipe ignored Alberta’s raw deal in Confederation, from lopsided equalization to federal overreach, and only deepens Western alienation. Rather than shaming Albertans into silence, her outburst might push them closer to the exit.
The singer’s foul-mouthed tirade won’t shame Alberta into silence. It’ll only push the province further toward the door
Jann Arden’s recent tirade against sovereigntist Albertans will probably do more to motivate them than set them back.
In an online rant, the Calgary-born-and-raised singer lowered public discourse a few notches.
“Hey, Alberta. Hey, you bunch of fu-king separatist wackos. How you doing? Feeling good about yourselves? You’re an embarrassment to this country. Everything you have, everything that you have enjoyed, cherished and benefited from, comes from being part of one of the greatest countries on the planet.”
Ha! Arden only embarrassed herself with her rudeness and ignorance.
Canada has been milking Alberta for a long time. In a 2024 study, the Fraser Institute showed that from 2007 to 2022, Albertans contributed $244.6 billion more in taxes and other payments to the federal government than they received in federal spending, more than five times as much as British Columbians or Ontarians. The other seven provinces were net takers.
Alberta is carrying Canada’s load by doing many things right, only to get zero respect and little benefit in return. For the past 10 years, Ottawa has done everything it can to undermine the energy sector through regulation and taxation, and encroach on provincial jurisdiction through legislation. Rather than feeding and protecting the goose that lays the golden eggs, it would rather pluck out its feathers.
The imbalance is nothing new. Since Confederation, most Canadian provinces have enjoyed jurisdiction over their natural resources. However, Alberta and Saskatchewan didn’t get that until 1930. When equalization began in 1957, Alberta received payments for eight years and never again. Quebec has been paid every year.
Ottawa went the route of more taxation, programs and debt, while Alberta took a more conservative approach. Its capacity to spend rose and fell with the price of oil. Just when Alberta hit another good wave, Ottawa launched the National Energy Program in the early 1980s—just to remind them who ruled the country and to whose benefit. Alberta got reduced profits and Eastern Canadians got cheap gas.
Alberta has been stuck in an abusive relationship for a long time and is wondering if it wouldn’t be better to be on her own. In the background is another suitor named Donald Trump, who would relieve Alberta of those pesky equalization payments and onerous regulations. The province would become the “cherished 51st state” instead of some western challenger to Central Canadian dominance that always needs to be put in its place.
Arden can’t see any of this. And her vitriol does nothing to make Albertans want to stay.
“You guys have your head so far up your as-es that you obviously can’t see what pri-ks you are,” Arden ranted. “The way you are treating your fellow citizens, your fellow Canadians, you guys are a bunch of creepy little pri-ks…
“Alberta will never separate from Canada. It’s never going to happen because people like me are going to stand up, throw their shoulders back, and keep fu-king yelling and keep standing up for what I know is right.”
Oh? Should Albertans stay because an insulting singer inspires a screaming mob? Will they suddenly find gratitude?
No. Abused Albertans have had enough. Their wants are not only reasonable, they’re good and fair policy. Canadians and their federal government should treat Alberta with proper respect, care about its grievances and feelings, and appreciate how they’d be a whole lot worse without her.
Lee Harding is a research fellow for the Frontier Centre for Public Policy.
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