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Alberta

Red Deer South UCP constituency board member resigns in response to COVID-19 restrictions

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10 minute read

A political firestorm is brewing in Alberta.  The province’s response to COVID-19 is leading to a growing rift amongst members of Alberta’s UCP.  In an effort to slow the spread of COVID the government’s approach has been to protect hospitals by limiting interactions between people. This has lead to thousands of job losses and months of painful uncertainty for small business owners.  Increasingly, individual UCP politicians and Constituency Associations are calling on the Premier to take a new direction. They want the province to shift focus to provide comfortable quarantine sites for vulnerable citizens and the people who work with them, while the rest of Alberta returns to normal.  In an effort to protect the fragile economy, a number of constituency associations are considering their strongest possible move.  They’re deciding whether they should call for a leadership review which would be a direct challenge to Premier Jason Kenney.

In Central Alberta, Calvin Goulet-Jones a member of the Red Deer South UCP Board has resigned.  In his resignation letter (below) Goulet-Jones says the UCP has abandoned the core principals which brought conservatives from different parties together.   Janis Nett, President of the Red Deer South UCP Board says other members of the board support the decision Goulet-Jones has made, but they also support Red Deer South MLA Jason Stephan and the party.  Nett says remaining board members are hoping a change in direction can be accomplished without fracturing conservatives into two more more parties in the next provincial election.  The Red Deer South Constituency Association meets later this week and a discussion about how best to convince party leadership to change direction will be on the agenda. 

Below is a post from the Facebook page of former Red Deer South Constituency Association board member Calvin Goulet-Jones.

Here is an excerpt of the my resignation letter to the local UCP board. I share this as a reminder of what the UCP was built on. For context, the content within the letter is relevant to the end of January. Please also note that this was not an admonishment of local board members, but a recognition that I can no longer be involved at this time for the reasons I state below.

It is no secret that times have changed and I strongly believe we have lost sight of the principles I feel we all hold dear. I am saddened when I look at the core principles that the UCP was built upon. I am saddened because it is so evident that the UCP has abandoned their foundation. They are no longer the party that Albertans elected.

Let me elaborate on the principles the UCP was built upon and where we find ourselves today.

Principle 1 – A robust civil society made up of free individuals, strong families, and voluntary associations.

We live in an era right now where individuals are not free. In fact, we live in an era where the freedom to earn an income is fined, where putting in an honest day’s work to put food on the table results in intimidation and strong families are being weakened as a result. This may not affect you, but it affects our society. When freedom is taken away from one individual it is taken away from all of us. Our society is neither robust, nor is it civil. In fact, it can be argued it is breaking down at the hands of our government.

Principle 2 – Freedom of speech, worship and assembly.

No one can take away the freedom to worship, including the government, however they certainly can put a major damper on it. Our government has intimidated and bullied churches severely beyond what could ever be deemed reasonable. Not only in Alberta but across this country the freedom to corporately worship has been taken away. The point is that this is a core principle of the UCP and the government seems to have not given it a second thought.

Principle 3 – Affirm the family as the building block of society and the means by which citizens pass on their values and beliefs and ensure that families are protected from intrusion by government.

The family is the building block of society, meanwhile families are suffering and children are bearing the brunt of the governments decisions. While the child help line has received an unprecedented amount of calls for help our government applies bandaids. This government is deconstructing the building block of society, mental health issues are rampant, and they have shifted the burden of covid and placed it upon the most vulnerable: Our children. They are affected by the very specific decisions that the government makes more than they will ever know.

Furthermore, the government’s logic is beyond reason. To say that a loved one may babysit your kids but that same loved one may not stay for dinner is absurd. To impose a fine to an individual who is struggling with loneliness and needs familiar company, yet allow a contractor to enter homes is mean spirited. I can go on, but I cannot imagine anyone can truly say that this government is busy ensuring that individuals are protected by the intrusion of government.

Principle 4 – Economic freedom in a market economy which encourages the creation of wealth through free enterprise, and protection of the right to own, enjoy and exchange property.

This government has shut down businesses and are bankrupting the individuals who own them. What’s more, this government has taken it further and has called those people who are soon to be homeless ‘selfish’. Alluding to the idea that they are greedy for wanting to earn an income. I find it very sad that the UCP has abandoned this principle as it is cornerstone policy that the UCP was built on. Free markets and private sector job creation. Instead, the UCP continues to actively work towards shutting small businesses down.

Principle 5 – Limited government, including low levels of taxation to help generate economic growth while allowing Albertans to enjoy the fruits of their own labour.

This government has given itself an unprecedented amount of power to intervene in any and every situation it deems fit. This is not limited government. The UCP speaks of low taxation while putting in policies that result in businesses and individuals earning a pittance. This government has literally made it a crime for certain people in our society to enjoy the fruits of their own labour by threatening fines and threatening prison.

Principle 6 – Fiscal responsibility, including balanced budgets, debt reduction, and respect for taxpayers’ money

The government has stifled growth and has ballooned debt. There was a reasonable point (back in March/April) where I can understand some of the decisions that were made. No one, including the government knew what was going on. We are well beyond that point though, yet the government continues to double down. Balanced budgets are a thing of fantasy, and we seem to live in a dream world that Trudeau himself would be proud of – that the government has an endless amount of money.

Principle 7 – Protecting public safety as a primary responsibility of government.

“Two Weeks to bend the curve.” “Stay home, stay safe.” “We are all in this together.” Three catch phrases used by our government to convince the public that abandoning your principles is worth it. Instead, this government is creating a never seen before amount of unrest. People are not happy. People are losing their homes and becoming desperate. It would be easy to say that this is because of the virus, but it is not. It is because of the specific decisions that our government is making.

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Alberta

Alberta government should create flat 8% personal and business income tax rate in Alberta

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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.

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Alberta

Province to stop municipalities overcharging on utility bills

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Making utility bills more affordable

Alberta’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.

“Albertans need relief from high electricity costs and we can provide that relief by bringing in fairness on local access fees. We will not allow municipalities – including the city of Calgary – to profit off of unpredictable spikes in electricity costs while families struggle to make ends meet. We will protect Alberta families from the extreme swings of electricity costs by standardizing the calculations of local access fees across the province.”

Danielle Smith, Premier

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.

“Albertans deserve to have fair and predictable utility bills. Our government is listening to Albertans and taking action to address unaffordable fees on power bills. By introducing this legislation, we are taking yet another step towards ensuring our electricity grid is affordable, reliable, and sustainable for generations to come.”

Nathan Neudorf, Minister of Affordability and Utilities

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.

“Over the last couple of years many consumers have been frustrated with volatile Regulated Rate Option (RRO) prices which dramatically impacted their utility bills. In some cases, these impacts were further amplified by local access fees that relied upon calculations that included those same volatile RRO prices. These proposed changes provide more clarity and stability for consumers, protecting them from volatility in electricity markets.”

Chris Hunt, Utilities Consumer Advocate

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.

“Addressing high, unpredictable fees on utility bills is an important step in making life more affordable for Albertans. This legislation will protect Alberta’s ratepayers from spikes in electricity prices and ensures fairness in local access fees.”

Chantelle de Jonge, Parliamentary Secretary for Affordability and Utilities

If passed, this legislation would also amend sections of the Alberta Utilities Commission Act, the Electric Utilities ActGovernment 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

  • Local access fees are essentially taxes that are charged to electricity distributors by municipalities. These fees are then passed on to all of the distributor’s customers in the municipality, and appear as a line item on their utility bills.
    • The Municipal Government Act grants municipalities the authority to charge, amend, or cap franchise and local access fees.
  • Linear taxes and franchise fees are usually combined together on consumers’ power bills in one line item as the local access fee.
    • The linear tax is charged to the utility for the right to use the municipality’s property for the construction, operation, and extension of the utility.
    • The franchise fee is the charge paid by the utility to the municipality for the exclusive right to provide service in the municipality.
  • Local access fees are usually calculated in one of two ways:
    • (1) A percentage of transmission and distribution (delivery) costs, typically 10-15 per cent.
    • (2) A fixed, cents per kilowatt-hour of consumed power charge (City of Edmonton).
  • Calgary is the only municipality that employs a two-part fee calculation formula:
    • 11.11 per cent of transmission and distribution charges plus 11.11 per cent of the Regulated Rate Option multiplied by the consumed megawatt hours.

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