Alberta
Our sports history has value
Simple confirmation that the Alberta Sports Hall of Fame has been operating without its standard financial aid from the provincial government prompted some interesting response during the last few days.
In a casual conversation, executive director Tracey Kinsella mentioned last week that COVID-19 made it necessary to cancel at least two annual fund-raisers – the Hall of Fame induction ceremony and its annual invitational golf tournament in Red Deer – and she was concerned about meeting routine expenses.
Consistently, the government’s contribution of $302,000 a year has been in the hands of Hall of Fame officials before the middle of the year. She expressed only mild frustration,, understanding that the coronavirus pandemic and other major financial issues have created major problems far from the world of sports. She did state that government staff members, working below the level of elected or appointed officials, have told her of their efforts to have the money forwarded as quickly as possible.
Perhaps this delay must be seen as part of a long and ongoing drop in Alberta’s financial support to amateur sports at all levels. In the 10-year period ending in 2019, the reduction reached $5.1 million – an average of $500,000 per year. We should hope not.
Some comparative figures seem to be well worth serious study:
* The economic impact of the 2019 Canada Winter Games in Red Deer was $110 million; impact of the 2018 Alberta Winter Games was $3.4 million for the Fort McMurray-Wood Buffalo area and $5.6 million for this host province;
* In 2018-19, Alberta Sport Connection, a sport delivery system disbanded months ago by the UPC, provided $7.2 million to be shared among 80 provincial sport organizations that delivered programming to more than 788,000 Albertans;
* Leduc hosted the 2016 Alberta Summer Games with an economic impact of $3.6 million for the area and $4.9 million for the province.
Still, government aid has dropped. Some citizens suggest minor and amateur sports should not receive government support during troubled times. Today it might be wise to ask Fort McMurray if that community will value the 2022 Arctic Winter Games? The record shows that numerous small- and mid-sized business stepped up during the 2018 Games, a difficult time for fire victims and petroleum companies that have served as a backstop to countless community and area projects.
After the severe floods earlier this year, it’s safe to guess that any international program that will improve community morale while adding some vital dollars to the public purse will be welcome. Incidentally, they’re headed to Wood Buffalo because COVID-19 forced cancellation of the scheduled 2020 event in Whitehorse. Fortunately, some of the dollars set aside and unused in the Northwest Territories have already arrived in Fort McMurray.
These days, surrounded by a crippled economy, I wonder if Alberta now wishes the 2026 Commonwealth Games were headed for Edmonton and 2026 Winter Olympics were coming to Calgary. Both possibilities were seriously discussed before being nixed.
During my five-year term as chair of Alberta Sport Connection, the organization received steady criticism for finishing third of fourth – usually in the rear of Quebec and Ontario – in provincial medal counts. I tried regularly to help almost any government official to focus on the cost of doing business.
It made no impact to point out that Alberta’s per-capita investment in sport programs is (or was) the second-lowest in Canada. Sorry, I can’t remember which province spent less, but I am sure that Saskatchewan receives $24.39 per capita and Newfoundland gets $8.36 per capita.
Alberta receives $3.85 per capita although 82 per cent of Albertans say in polls that they believe sport contributes to quality of life. And those I have spoken to say clearly that the Alberta Sports Hall of Fame has value.
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
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