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Alberta

Prominent Alberta Conservative Voice Explains: Why I am voting Yes to End Equalization…

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8 minute read

From Danielle Smith

To me, equalization, the health transfer and the social transfer combined, are a measure of how much the federal government is overtaxing us. The Constitution has a very limited role for the federal government. The federal government likes to use its spending power to meddle in areas that aren’t its jurisdiction. My view is this – if you want to pass policy for health care, long term care, drug plans, day care, welfare – then RUN FOR PROVINCIAL OFFICE. Don’t take money from the provinces, launder it through the federal bureaucracy and then divvy it up unfairly to give back more money to the provinces that you think will vote for you. (Yep – that’s how I see it.)

So let’s analyze the numbers a bit shall we? I have three tables to show you that tell the whole story.

The level of overtaxation (on these three programs alone) is easily quantified. In the 2021-22 fiscal year it will be $83.890 billion. In just 10 years, the federal overtaxation has grown from $60.085 billion – that’s a 40 per cent increase.

Per person Ottawa transfers an average of $2,181. But of course we know, because of equalization, some provinces are more equal than others.

Take a look at Alberta. Our transfers have grown from $3.661 billion to $6.835 billion in the same period, or from $946 per person to $1,523 per person.

Now take a look at Quebec. Their transfers have grown from $17.329 to $26.306 in the same 10 year period, or $2,148 per person to $3,039 per person.

How would an equal per capital model impact the other provinces?…

In my column, I said we should eliminate equalization and instead do equal per person transfers to every province. If we did that, Alberta would receive $9.788 billion this year, a difference of $2.953 billion more. Alberta isn’t the only one getting hosed. Look at the final line in the table below. So are BC and Ontario. Saskatchewan is shortchanged $781 million, and poor Newfoundland and Labrador, which in on the brink of bankruptcy but still doesn’t qualify for equalization, would get $343 million more.  If we eliminated equalization and gave everyone the same per person amount, Quebec would receive $18.879 billion or $7.427 billion less than is expected this year. As it should be. Saskatchewan and Newfoundland and Labrador should not be subsidizing Quebec.

There are a couple of things I really like about a per person transfer model.

  1. It encourages provinces to compete to attract people, because the more people you attract the more dollars you attract.

I understand the Fairness Alberta argument about changing equalization. They suggest a markup to market on the electricity price that hydro rich provinces charge, they want to stop growing equalization with GDP growth, and they want to account for the different cost of services in each province. But in the end, if we create a program that rewards provinces only for attracting people then they have to implement policies that attract people. Like having low rates of taxation, making it easier to start a business, having affordable housing, and so on. There is a lot that is in the power of government. But if we keep giving provinces more money as they adopt policies that reduce their attractiveness it is counterproductive.

  1. A per person model is going to give a greater benefit to smaller provinces with lower costs of services than larger provinces with a larger cost of service.

Even if making Alberta pay more is the objective of Ottawa, an equal per capita transfer amount still has Alberta paying disproportionately into the pot. Alberta has higher wages, higher workforce participation rates, higher spending so we will stay pay more in personal and corporate income taxes, GST, fuel tax, EI, CPP and other federal taxes, than we receive back in per person federal transfers. This won’t eliminate the net payer status we have; but it will get us on our way to narrowing the gap.

  1. Once we have established  a single per person transfer that is the same across the country we can move to the next step, which is convert the cash transfer into tax points instead.

If Alberta was getting its proper share of transfers – $9.79 billion – we could then move to the next stage of negotiation with Ottawa. Which is to convert the cash to tax points instead. I’ll leave it to the accountants to figure out the precise numbers, but conceptually let’s say it would mean reducing the federal income tax by 5 percentage points across all categories and increasing provincial income tax by 5 percentage points across all categories. The reason to do that is this, as Alberta grows so would it’s share of own-source revenues. Rather than have Ottawa continue to capitalize on our growth, we would.

  1. Once we have fixed the problems with federal provincial transfers, we can move on to fix CPP and EI next.

Alberta pays disproportionately into CPP and EI too – we pay roughly 30 per cent of the premiums for CPP and only get back about 10 per cent of the spending. I haven’t done the calculation on EI but I suspect it’s even worse. If we can stop the overtaxation on income tax, these two programs should be next.

Enough is enough…

For too long we have just accepted that this is the way the country works. I think we’ve been bullied into thinking that paying disproportionately into Confederation was our penance for the federal government cancelling the National Energy Program. It’s almost as if we collectively felt that if only we paid off central Canada, they wouldn’t come after our resource wealth again. How wrong we were. Now Quebec is so bloody minded they don’t care if they hurt themselves by killing off our energy industry.

That’s fine. If they don’t want the revenues that come from our energy resources, we should be happy to keep it for ourselves. Let’s start to show them we are serious by strongly voting yes to end equalization on October 18.

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RCMP chopper pilot pulls off amazing helicopter rescue of missing woman west of Innisfail

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News release from Innisfail RCMP

Innisfail RCMP seek public assistance in locating missing elderly female – Update #3

Innisfail, Alta. – RCMP would like to provide additional details and clarify some information with regards the search efforts and the ultimate rescue of Lorraine Vandenbosch who went missing from Dickson Point Campground on May 29, 2023.

Upon locating Lorraine as she emerged from a heavily wooded area, rescue teams had difficulties transporting her due to a steep embankment. Alberta RCMP Air Services were again up to the task in supporting rescue efforts by landing in the difficult location and transporting Lorraine . She was taken for medical assessment and ultimately transported by STARS to hospital.  Lorraine remains confused about her ordeal and RCMP have few details at this time.

Background

June 1, 2023

Innisfail RCMP seek public assistance in locating missing elderly female – Update #2

Innisfail, Alta. – RCMP are please to report that after 4 days of searching, Lorraine Vandenbosch has been located by rescue teams alive and in good spirits.

The RCMP helicopter located Lorainne this morning at approximately 9:30 a.m. walking out of a heavily wood area near the Dickson Trout Pond.

Lorainne is receiving precautionary medical attention and is with her family.

RCMP would like to thank the tireless effort of all involved in this search: Red Deer County SAR, Rocky Mountain House SAR, Sundre SAR, Wetaskiwin SAR, Red Deer County Patrol, Innisfail Fire Dept, Red Deer County Fire Dept, Spruceview Fire Dept, Alberta Conservation Officers, Raven Crime Watch and Mounted Horse volunteers.

RCMP would also like to thank the organizations that provided food to the teams, Spruceview Bakery and Red Deer Costco. This support allowed the rescue teams to continue working long hours.

Background

Innisfail RCMP seek public assistance in locating missing elderly female – Update

Innisfail, Alta. –  Innisfail RCMP continue to search for Lorraine Vadenbosch who went missing from the Dickson Point Campground at Glennifer Lake yesterday. RCMP with assistance from Red Deer County, Sundre, and Rocky Mountain House Search and Rescue teams are actively searching the area.

While search teams continue to search, we are asking residents in the Glennifer Lake, Dickson, Spruce View, and nearby areas, to check your properties including treed outcroppings and outbuildings for Lorraine.

If you have any information regarding the whereabouts of Lorraine, please contact the Innisfail RCMP Detachment at 403-227-3342.  If you want to remain anonymous, you can contact Crime Stoppers at 1-800-222-8477 (TIPS), online at www.P3Tips.com or by using the “P3 Tips” app available through the Apple App or Google Play Store.

May 29, 2023

Innisfail RCMP seek public assistance in locating missing elderly female

Innisfail. Alta. – Innisfail RCMP are seeking public assistance in locating a missing elderly female. Lorraine Vandenbosch (78), a resident of Didsbury, was last seen on May 29, 2023, at 10:30 a.m., at the Dickson Point Campground at Gleniffer Lake. Lorraine may be confused and there is great concern for her safety.

Lorraine is described as:

  • 5 feet tall
  • Red hair
  • Light complexion
  • Last seen wearing white pants, white and black shirt, black runners and a cream colored hat

If you have any information regarding the whereabouts of Lorraine, please contact the Innisfail RCMP Detachment at 403-227-3342.  If you want to remain anonymous, you can contact Crime Stoppers at 1-800-222-8477 (TIPS), online at www.P3Tips.com or by using the “P3 Tips” app available through the Apple App or Google Play Store.

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