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Alberta

Alberta announces new senatorial election in October 2021

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From the Province of Alberta: Battling back with a new Senate Election

Bill 13, the Alberta Senate Election Act, would reinstate Senate nominee elections to enable Albertans to choose who would best represent them in the Senate.

Premier Jason Kenney and Justice and Solicitor General Minister Doug Schweitzer announce Bill 13: The Alberta Senate Election Act.

Senate nominee elections would reflect the democratic will of Albertans and make senators directly accountable to Alberta voters to defend our province’s interests.

“We are introducing the Alberta Senate Election Act to enable Albertans to choose the people they think would best represent them in the Upper Chamber. Senators who are elected by Albertans have shown that they effectively stand up for Alberta’s economy, jobs and families. They set a strong example to other provinces of the benefits of having effective voices with the moral legitimacy of having been elected.” Jason Kenney, Premier

In the four elections between 1989 and 2012 held under the previous Senate elections law, which expired in 2016, Alberta voters nominated 10 candidates for Senate appointments. Of those, five were ultimately appointed, including current senators Doug Black and Scott Tannas, who recently stood up for Alberta’s economy and for resource jobs in Canada by advocating for changes to Bill C-69, the ‘No More Pipelines Bill’ and the prejudicial Bill C-48.

“Elected senators are accountable to Albertans and have greater moral legitimacy to effectively speak on our behalf because they receive a mandate from voters. When Albertans have had a say in who would best represent them in the Senate, they have chosen people of the highest calibre who have been effective voices for Alberta’s interests.” Doug Schweitzer, Minister of Justice and Solicitor General

“Alberta Senate nominee elections had played an important role in allowing Albertans to decide who will be their voice at the federal Parliament. These elections bestowed significant moral and political legitimacy to Alberta’s senatorial candidates. I was honoured to have won in the 2012 Alberta Senate nominee elections, and am proud to continue to serve alongside my fellow Albertan colleague, the Honourable Scott Tannas. The renewal of the Senatorial Selection Act is an important step forward for reasserting Alberta’s role as a leader in the democratization of the Canadian Senate.”Sen. Doug Black

“Since 1989, Alberta voters have gone to the polls to nominate their choice for who should represent them in Canada’s Senate. I am proud to be one of five elected candidates to have been appointed as a senator from Alberta. I am pleased to see the Government of Alberta is reviving the Senatorial Selection Act after the previous government refused to renew it. Albertans have a proud tradition of electing candidates for the Senate, and should continue to do so.”Sen. Scott Tannas

“As a proud Albertan and retired member of the Senate of Canada, I am pleased to see the introduction of Bill 13: The Alberta Senate Election Act. This act would revive Alberta’s proud history of leading and strengthening our shared Canadian democratic traditions. I have always firmly believed that a strong, democratic Senate is in the interest of provinces like Alberta that do not have adequate weight in the House of Commons but important regional interests. Under the leadership of Premier Jason Kenney, I am confident that this government will restore Alberta’s rightful voice and standing in federal politics.”Betty Unger, former senator

“In 2012, over 300,000 Alberta voters marked my name on their Senate election ballot. Despite that, Prime Minister Justin Trudeau refused to respect the wishes of Albertans, and instead appointed senators who voted against Alberta’s interests and in favour of the so-called ‘No More Pipelines Act,’ Bill C-69. It’s time for Albertans to once again have their say on who they want to see representing them in Ottawa.”Mike Shaikh, senate nominee

Quick facts

  • Alberta has six representatives in the Senate.
  • In 2012, 1.3 million Albertans voted in a Senate nominee election, which was held in conjunction with the provincial election.
  • In general, the law would allow for voting for Senate nominees:
    • as part of provincial or municipal elections
    • as a stand-alone process
    • with a referendum
  • The next scheduled Alberta Senate vacancy will be in March 2021.
  • The Government of Alberta would provide names of elected nominees to the prime minister for consideration when filling Senate vacancies.
  • The previous Senate elections legislation expired in 2016.

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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