Alberta
Province of Alberta replies to Joe Biden’s promise to cancel Keystone XL
From the Province of Alberta
Joe Biden KXL: Minister Sonya Savage
Minister of Energy Sonya Savage issued the following statement about reports U.S. presumptive democratic presidential nominee Joe Biden would cancel the presidential permit for Keystone XL:
“While we are disappointed to hear these reports from the Biden campaign, we remain confident Keystone XL remains a critical part of North America’s post-pandemic economic recovery.
“The project — already under construction — has long held widespread bipartisan support from U.S. lawmakers including all governors in the states the pipeline travels through. The majority of American people have consistently backed Keystone XL in large part due to the tens of thousands of U.S. jobs the pipeline will support, and the millions of dollars in tax revenue that will be used to build better communities for American families. Today, unionized workers are already working on this shovel ready project that puts citizens in both Canada and the U.S. back to work.
“The pipeline is the most studied in American history and has been deemed safe and in the public interest through multiple state and federal reviews, including two under the Obama administration.
“Our government invested in this project because it is tied to our province’s vital long term economic interests. It will lead to higher prices as well as increased volumes of oil sands crude production, generating at least $30 billion in increased royalties over 20 years for Alberta taxpayers.
“The project will put 12,000 Canadians to work and will generate billions of dollars of employment income for Canadian and U.S. workers at a time when they need it most.
“Rather than speculating about the outcome of the U.S. election, we will spend our time continuing to meet with our U.S. allies and speak to Alberta’s role in supporting North American energy independence and security.
“Without more Canadian crude, the U.S. will be subject to increased reliance on heavy crude oil from places like Venezuela and will continue to be a victim of the same price wars and instability we recently witnessed from Russia and Saudi Arabia.
“As our closest friend and ally, we would expect the U.S. government, regardless of electoral politics, to respect the Canada-U.S. relationship.
“Our government will work with TC Energy and the Government of Canada to defend the value of our investment in this project that is a vital part of Canada-U.S. relations.”
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
Related information |
-
Frontier Centre for Public Policy2 days ago
The tale of two teachers
-
Business1 day ago
Maxime Bernier warns Canadians of Trudeau’s plan to implement WEF global tax regime
-
International20 hours ago
UN attacks stay-at-home motherhood as ‘gender inequality’
-
COVID-191 day ago
WHO Official Admits the Truth About Passports
-
Alberta20 hours ago
Province to stop municipalities overcharging on utility bills
-
Energy19 hours ago
Anti-LNG activists have decided that they now actually care for LNG investors after years of calling to divest
-
Freedom Convoy1 day ago
Ottawa spent “excessive” $2.2 million fighting Emergencies Act challenge
-
Alberta1 day ago
Alberta moves to protect Edmonton park from Trudeau government’s ‘diversity’ plan