Alberta
Premier Smith urges PM Trudeau to talk Ethical Energy Security in meeting with US President Biden
Dear Prime Minister Trudeau:
The arrival of President Joe Biden presents our nation with an opportunity of great significance. It is my request that the federal government uses its platform to focus on collaboration between the U.S. and Canada, highlighting the critical need for North American energy security.
We have a deep, long-standing relationship with the U.S. at both the federal and state levels, which is only growing in importance. In 2022, Alberta surpassed Ontario and Quebec as the largest provincial exporter of goods to the U.S. at $182.5 billion, with energy making up 85 per cent of exports to the United States. Alberta, by far, remains the single largest source of U.S. energy imports.
This economic reality, along with Russia’s invasion of Ukraine, has highlighted that North American energy security must be a top priority for the Government of Canada. I urge you to raise the need for better collaboration between Canada and the U.S. to ensure the continued and enhanced supply of sustainable, affordable, and reliable energy to the U.S.
I recommend that the two governments work to fast-track energy projects in the name of economic security for our democratic partners, as committed to by Deputy Prime Minister Chrystia Freeland. A similar effort is needed in critical minerals as the world shifts to lower emitting sources of energy.
Alberta, through both government policy and industry action, is leading the way on reducing emissions and driving the transition to new sources of energy. New investments in the province are global flagships in clean energy and emissions reductions technology. For example, Pennsylvania’s Air Products will create a world-scale net-zero hydrogen energy complex in Alberta, and Dow is advancing the world’s first net-zero carbon emission integrated polyethylene complex at its existing site near Edmonton. It is also worth noting that Canada’s oil sands operators have announced plans to spend $24 billion on emission-reduction projects by 2030 as part of their commitment to reach net zero by 2050. All of this amounts to a herculean effort undertaken by industry partners, and Alberta’s government, to position ourselves as the foremost leader in emissions reduction and responsible energy production.
As you know, management of oil and gas methane emissions is one of this country’s greatest climate success stories. Collaboration with the U.S. on methane emissions would both advance climate action, and address regulatory inconsistencies between the two countries. As of 2020, methane emissions from the upstream oil and gas sector in Western Canada have decreased by around 44 per cent from the 2014 baseline – ahead of our schedule of 45 percent by 2025. More evidence of Canada, and Alberta, leading the way.
Alberta is home to vast geological potential, an experienced, skilled, workforce, and has the necessary processing and transportation infrastructure in place to support a growing critical minerals sector. For example, technological advances to extract minerals from underground brine solutions are found throughout Alberta. These extraction technologies could result in a low emission, sustainable source of lithium to meet the demand of our emerging battery value-chain. We would encourage your government to work with the provinces, especially Alberta, on critical minerals and seize the opportunity to collaborate with the U.S. on enhancing North American supply chains.
As the owners and stewards of our world-class natural resources, any discussions involving energy security, natural resources, and trade must fully involve the provinces. I would be pleased to help assist you, and the federal government in advancing the work on North American energy security as well as developing the business cases to increase exports of clean Alberta energy, critical minerals and technologies to the U.S. As is only appropriate when discussing natural resources, and areas of exclusive provincial jurisdiction, I would also request that Premiers be invited to participate in a meeting with the President and his delegation.
I look forward to your response and welcome an opportunity to collaborate. We both agree that the world needs more Canada. It’s imperative that in a time of such uncertainty, and unaffordability, that Alberta, and Canada profile ourselves as the preferred supplier of responsibly produced, ethical energy to the U.S., North America, and the world.
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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