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Former City Council Candidate says taxpayers mislead on tax increase

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6 minute read

Submitted as an Opinion by Calvin Goulet-Jones

1.89% Tax increase you say? I beg to differ.

Every Spring the city sends out a news release stating how much the city has increased our property taxes. Have you noticed something off with your taxes over the last few years? Now before we get into it, note that the city collects taxes in three ways. First they collect your property tax, next they collect the provincial education property tax, and third they collect the piper creek foundation taxation levy which I believe goes to seniors’ housing. The increases I am going to refer to take out the education and piper creek amounts as the city isn’t on control of those and focusses specifically on the tax revenue collected for the city. 

Let’s continue. 

In 2017 (May 1 to be exact) the City put out a news release saying the combined taxation increase was 1.1% for that year
In 2018 (April 30) the City put out a news release saying the combined tax increase was 1.5% for that year
In 2019 (April 29) the City put out a news release saying the combined tax increase was 1.89% for this year.

If you are like me you pay close attention to your taxes. I noticed an extreme variation between what the City News release stated and what we are actually taxed. And in case you’re wondering, no, the variation is not because of property value swings. 

Now hold onto your seat here. 

Red Deer Council (who seem to have smiles plastered on their faces every time they announce the tax rate increase) are either extremely ignorant or purposely deceptive as the property tax increases that you and I receive are not at all what they announce. 

When the city announces what the tax rate increase is, they are not actually announcing the tax rate, they are announcing the Budget Increase. This may seem somewhat similar but it is not especially In a city who’s growth has stagnated, and where businesses are fleeing downtown causing the tax base to decrease substantially. If you lose 2% of your revenue and increase your budget by 2% you have to make up that difference and that is done in the real tax rate which is called the Mill Rate. 

Red Deer’s administrations position (as sent to me in an email) is that “Mill rate changes are not indicative of tax rates”. Nothing could be further from the truth as your taxes are calculated by the Mill rate multiplied by your homes assessed value. When you are paying significantly more per $1000 of your house’s value than what they announce, you know that their statement that the mill rate not being indicative of tax rates is full of bologna. 

Lets look deeper where you will see Red Deer’s Mill rate increasing since the beginning of the largest recession our province has seen in a generation. The increases are mind blowing. 

Unbeknownst to many the 1.89% announced this year does not reflect the actual increases. The actual Mill rate increase was not 1.89% (remember this is just the city portion) it was a whopping 4.85%. That’s right,but still barely scratching the surface. In 2018, Red Deer’s 1.5% increase announcement was actually a 4.323% Mill rate increase. In 2017, the city’s 1.1% announcement was actually a 4.611% increase! 

To give some context Red Deer’s Population growth since 2015 has officially shrunk, we recorded 100807 people in 2015. The latest data has us at 99,832. Inflation since 2015 has been 6.21%, and Albertas GDP since 2015 has grown by less than 1%. The popular line during elections is that we are going to tax population growth + inflation. Well that only works if you actually follow through. The actual tax increases we have experienced since 2015 have been nearly THREE TIMES inflation + population growth. Since 2015 Red Deer residents have seen a whopping 17.014% increase, which is a 10.8% higher increase beyond inflation and population growth and it appears to me that council believes they have done a good job here. What a joke. 

Red Deerians know full well how hard this recession has hit us. Many of us are easily down 10% in our earnings and many more are down 20%, 30%, some even 40% in their yearly earnings since 2015. This doesn’t even include those who have been affected by unemployment. Council owes it to Red Deerians to do better and frankly Red Deerians owe it to themselves to ensure that in 2021 more than just 29% of the electorate show up to vote.

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Business

UN plastics plans are unscientific and unrealistic

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News release from the Coalition of Concerned Manufacturers and Businesses of Canada

“We must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.”

This week Ottawa welcomes 4,000 delegates from the United Nations to discuss how they will oversee a reduction and even possible elimination of plastics from our lives. The key problem is no one has ever figured out how they will replace this essential component of our modern economy and society. The Coalition of Concerned Manufacturers and Businesses of Canada (CCMBC) has launched an information campaign to discuss the realities of plastic, how it contributes massively to our society and the foolishness of those who think plastics can be eliminated or greatly reduced without creating serious problems for key industries such as health care, sanitary food provision, many essential consumer products and safety/protective equipment, among others. CCMBC President Catherine Swift said “The key goal should be to keep plastics in the economy and out of the environment, not eliminate many valuable and irreplaceable plastic items. The plastics and petrochemical industries represent about 300,000 jobs and tens of billions contribution to GDP in Canada, and are on a growth trend.”

The UN campaign to ban plastics to date has been thwarted by reality and facts. UN efforts to eliminate plastics began in 2017, motivated by such terrible images as rivers with massive amounts of floating plastic and animals suffering from negative effects of plastic materials. Although these images were dramatic and disturbing, they do not represent the big picture of what is really happening and do not take into account the many ways plastics are hugely positive elements of modern society. Swift added “Furthermore, Canada is not one of the problem countries with respect to plastics waste. Developing countries are the main culprits and any solution must involve helping the leading plastics polluters find workable solutions and better recycling technology and practices.”

The main goal of plastic is to preserve and protect. Can you imagine health care without sanitary, flexible, irreplaceable and recyclable plastic products? How would we keep our food fresh, clean and healthy without plastic wraps and packaging? Plastic replaces many heavier and less durable materials in so many consumer products too numerous to count. Plastics help the environment by reducing food waste, replacing heavier materials in automobiles and other products that make them more energy-efficient. Many plastics are infinitely recyclable and innovations are taking place to improve them constantly. What is also less known is that most of the replacements for plastics are more expensive and actually worse for the environment.

Swift stated “Environment Minister Steven Guilbeault has been convinced by the superficial arguments that plastics are always bad despite the facts. He has pursued a campaign against all plastics as a result, without factoring in the reality of the immense value of plastic products and that nothing can replace their many attributes. Fortunately, the Canadian Federal court overturned his absurd ban on a number of plastic products on the basis that it was unscientific, impractical and impinged upon provincial jurisdiction.” Sadly, Guilbeault and his Liberal cohorts plan to appeal this legal decision despite its common-sense conclusions. Opinion polls of Canadians show that a strong majority would prefer this government abandon its plastics crusade at this point, but history shows these Liberals prefer pursuing their unrealistic and costly ideologies instead of policies that Canadians support.

The bottom line is that plastics are an essential part of our modern society and opposition has been based on erroneous premises and ill-informed environmentalist claims. Swift concluded “Canada’s record on plastics is one of the best in the world. This doesn’t mean the status quo is sufficient, but we must focus on practical solutions and upgrading our recycling infrastructure, not ridiculous restrictions that will harm our health care system, sanitary food supply, increase costs and endanger Canadians’ safety, among other downsides.” The current Liberal government approach is one that has no basis in fact or science and emphasizes virtue-signaling over tangible and measurable results.  Swift noted “The UN’s original founding purpose after World War II was to prevent another world war. Given our fractious international climate, they should stick to their original goal instead of promoting social justice warrior causes that are unhelpful and expensive.”

The CCMBC was formed in 2016 with a mandate to advocate for proactive and innovative policies that are conducive to manufacturing and business retention and safeguarding job growth in Canada.

SOURCE Coalition of Concerned Manufacturers and Businesses of Canada

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Fraser Institute

Canadians should decide what to do with their money—not politicians and bureaucrats

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From the Fraser Institute

By Jake Fuss and Grady Munro

Since taking office in 2015, the Trudeau government has expanded the federal government’s role in making decisions for individuals and families, rather than letting Canadians decide on their own. And with its latest federal budget, which it tabled last week, it once again decided that politicians and bureaucrats should determine what people want and need, rather than the people themselves.

Indeed, during its tenure the Trudeau government has introduced a slew of new programs (e.g. national dental care, $10-a-day day care), which have contributed to an expected $227.4 billion increase in annual federal program spending (total spending minus debt interest costs) from 2014/15 to 2024/25. And according to the budget, due to new programs such as national pharmacare, annual program spending will increase by another $58.4 billion by 2028/29.

In many cases the impetus for these new programs has been to increase people’s access to certain goods and services (most of which were already provided privately). But the Trudeau government has consistently ignored the fact that there are always two ways for the government to help provide a good or service—tax and spend to directly provide it, or lower taxes and leave more money in people’s pockets so they can make their own decisions—and instead simply opted for more government.

Consequently, Canadians now pay higher taxes. In 2014/15 (the year before Prime Minister Trudeau was elected), total federal revenues represented 14.0 per cent of the economy (as measured by GDP) compared to 16.6 per cent in 2024/25—meaning taxes have grown faster than the economy.

More specifically, the total tax bill (including income taxes, sales taxes, property taxes and more) of the average Canadian family has increased from 44.7 per cent of its income in 2015 to 46.1 per cent in 2023. That means the average family must work five extra days to pay off the additional tax burden.

And families are feeling the burden. According to polling data, 74 per cent of Canadians believe the average family is overtaxed. And while the Trudeau government did introduce tax changes in 2016 for middle-income families, research shows that 86 per cent of these families ended up paying higher taxes as a result. Why? Because while the government reduced the second-lowest federal personal income tax rate from 22.0 to 20.5 per cent, it simultaneously eliminated several tax credits, which effectively raised taxes on families that previously claimed these credits.

Finally, many Canadians don’t believe their tax dollars are being put to good use. When polled, only 16 per cent of Canadians said they receive good or great value for their tax dollars while 44 per cent said they receive poor or very poor value.

Simply put, the Trudeau government has consistently empowered politicians and bureaucrats to decide how Canadians should use their hard-earned money, rather than allowing individuals and families to make those decisions. With its 2024 budget, once again the Trudeau government has demonstrated its belief that it knows best.

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