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Sunnybrook has been paying property taxes for 56 years. Was it good value?

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9 minute read

red deer city hall

It is easy to travel around Red Deer and see examples of idealism meeting practicality and realism.

Unfinished roads going to non-existent bridges. Neighbourhoods like Timberlands, with a firehall and a high school and way too many undeveloped lots.

Capstone is a decades old work in progress that keeps hitting the taxpayers. In the beginning it was simple, move the dilapidated public works building out of downtown and turn the riverfront property into high end river view properties.

A wonderful vision but reality stepped in. The new public works, went with the high-end vision and the costs soared to north of a hundred million dollars and kept going. Re-aligning the roads took another 50 million, upgrading services, burying lines cost more.

After decades and about $200 million dollars we have 23 acres of empty vision. There is still talk of a $20+ million pedestrian bridge just metres away from Taylor Drive bridge. The costs for this unfinished vision is hitting $10 million an acre.

Enough with the eternal yet to be built projects, as more examples like the Dawe Arena twinning, north of 11A , 50m pool, Hazlett Lake, and the list keeps going.

Let us talk about the city’s tendency to build and abandon philosophy. The neighbourhoods that they cannot maintain.

Our Premier keeps talking or ranting about equalization payments, How Alberta has paid more to Ottawa than they have received back.

Our neighbourhoods can say similar sentiments when it comes to city hall. My neighbourhood, Sunnybrook is 55 years old. Our roads and sidewalks are 55 years old. We have been paying property taxes for 55 years. Did we get 55 years of property taxes back in return?

My 55 year old sidewalk got half of one crack repaired this year. The second time in the 20 plus years that I have lived on this street. I have shrubs growing in my sidewalk, I have pulled saplings out of the street in front of my house. My sidewalk has sunk to becoming a pool or an ice rink depending upon the weather.

The city said it cannot afford to maintain the 800 kms of sidewalks it now has. The population is static, population increase of 195 in 5 years, but we built 1299 new homes with sidewalks at the same time. If the crack is not at least 25mm (1”) wide and poses a tripping hazard it will not be repaired.

The city subsidizes the downtown with our taxes. They feel the downtown is a vital attraction for Red Deer. Sunnybrook was once named in MacLeans magazine as the Number 1 neighbourhood in Canada. Did the city capitalize on this national news item? No, it widened 32 Street and 40 Avenue and isolated and abandoned Sunnybrook.

The Bower Mall was built with the understanding that the Molly Banister drive would be extended to give direct access to Sunnybrook, Anders, Morrisroe, Inglewood, Vanier, Mountview, Deer Park etc. The Bower subdivision was built isolated from Molly Banister Drive by this commercial development.

The city wants to abandon that commitment.

Ideally, in another dimension, the Piper Creek would be this bubbling brook enjoyed by abundant wildlife and environmentally conscious Red Deer residents. Reality sets in.

The polluted, weed infested, algae prone creek by Bower Mall after flowing through 2 landfills, dead falls, blow downs, and a cow pasture, is isolated from the trail that comes out of the woods by Molly Banister Drive. The trail continues south in the grasses parallel with Barrett Drive on the west side.

The east side of the creek will have the old barb wired game proof fence that borders it, be replaced by the rear residential fences of 50 new homes, if the road allowance is removed.

Negating the bridge, eliminating the customer traffic, slowing emergency vehicles, forcing thousands of drivers daily to drive 4 extra kilometres in a city that CBC once reported had the poorest air quality in Canada. (September 9, 2015).

The city talks about a Garden of Eden, this wonderful wildlife corridor, where animals can roam except reality plays a hand. Traffic is a wall less barrier. 10,000 cars per day is the tipping point for wildlife. 32 Street is currently at 23,500 cars per day with expectations of 40,000 per day when it is widened to 6 lanes when Molly Bannister is not extended. 19 Street is expected to be widened to 6 lanes and traffic is expected to soar to even higher numbers.

The thing about 19 Street is that it too crosses the creek in this fantasy wild life corridor, on the south side of Molly Banister. There is no bridge, no tunnel, no safe way for animals to cross. There is talk about a pedestrian bridge for residents to cross. There is talk about a traffic circle for cars to have easier access to 19 Street. Where are the city councillors demands to protect the oft-mentioned wildlife corridor?

The proposed bridge for Molly Banister will take up an acre of land and the road will run along the creek similar to Barrett Drive in Bower and Selkirk Boulevard in Sunnybrook then run parallel with the power lines similar to 22 Street. The alternative being proposed is 50 houses along the creek taking up 16 +/- acres then a road to the power lines. Which is honestly better for wildlife?

The north connector encroaches on wildlife way beyond the Molly Banister Ext. yet silence from city councillors.

Realism plays a dirty hand at times, and the city seems to ignore this and you only need to look at future expenses the city incurred in their quests for unrealistic expectations. The million dollar annual payments for years to come for the winter games, the Exhibition Hall at the Westerner where councillors sat on the board, Capstone, Timberlands, North of 11A, Dawe arena, the unfinished bridge, the bus terminal’s green roof, and the list grows.

There are more options than (1)dream the impossible or (2) build and abandon? You could maintain what you have. Follow through on obligations and stop making rash decisions on immediate schemes.

There 300 families backing onto 32 Street that do not deserve to have their quality of life diminished. The same can be said of the families backing onto 19 St.

Thousands of families in neighbourhoods south of 39 St. do not deserve the traffic congestion forced onto their commute.

19 Street is becoming a valued asset to county businesses and Gasoline Alley will be easier to access than downtown. The downtown needs our help in more ways than subsidies.

I believed that the bigger the picture the more obvious the need for Molly Bannister to be extended.  So did we get good value for our property taxes? Will the attacks on our quality of life end? Does equalization even exist? We will see.

Thank you.

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International

Telegram founder tells Tucker Carlson that US intel agents tried to spy on user messages

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Telegram’s Pavel Duroc

From LifeSiteNews

By Matt Lamb

Federal law enforcement tried to convince a Telegram engineer to change the software so law enforcement could read the messages of its users, Pavel Durov told Tucker Carlson during a recent interview.

Federal law enforcement tried to convince a Telegram engineer to change the software so law enforcement could read the messages of its users, the company’s founder told Tucker Carlson during a recent interview.

But he also warned the bigger threat to free expression comes from Google and Apple, which effectively control the use of apps on smartphones.

Telegram is a messaging app that founder Pavel Durov created with his brother after experiencing harassment by Russian officials. Durov remains the “sole owner” of the company. Users can set up “channels” to send mass messages. This function has been useful for political movements, including democracy activists in Hong Kong.

It now has 900 million monthly users worldwide. It uses encrypted messaging which protects users’ privacy.

Born in the Soviet Union in 1984, the entrepreneur had created another social media company; it predated Facebook but was similar in its networking functions. Russian officials demanded Durov hand over private data from groups on the platform, called VK, that were organizing against Vladimir Putin and the country’s leadership.

But in some ways, he faced similar problems from American officials when he was working in San Francisco.

“We get too much attention from the FBI, the security agencies, wherever we came to the US,” Durov said. “So, to give you an example, last time I was in the US, I brought an engineer [who] is working for Telegram, and there was an attempt to secretly hire my engineer behind my back by cyber security officers or agents, whatever they are called.”

Durov said the officials “were curious to learn which open-source library site integrated through Telegram’s app,” he said.

But furthermore, “they were trying to persuade him to use certain open-source tools that he would then integrate into the Telegram code that, in my understanding, would serve as backdoors.”

“The US government, or maybe any other government, because a backdoor is a backdoor regardless of who is using it. That’s right,” Durov said.

“You’re confident that happened,” Carlson asked, about the recruitment efforts.

Durov said yes, because the engineer wouldn’t have a reason to make up the story and Durov shared that he himself has been targeted by the intelligence agencies for recruitment.

He told Carlson:

There is no reason for my engineer to make up the stories. Also, because I personally experienced similar pressure in the U.S whenever I would go to the US, I would have, two FBI agents greeting me at the airport, asking questions. One time I was having my breakfast at 9 a.m. and the FBI showed up at my house that I was renting. And, that was quite surprising. And I thought, you know, we’re getting too much attention here. It’s probably not the best environment to run…

… They were interested to learn more about Telegram. They knew I left Russia. They knew what we were doing, but they wanted details. And my understanding is that they wanted to establish a relationship, to, in a way control Telegram better… I understand they were doing their job. It’s just that for us, running a privacy focused social media platform, that probably wasn’t the best environment to be in. We want to be focused on what we do, not on the government relations of that sort.

“Government relations,” Carlson said, laughing.

The company has now operated out of Dubai in the United Arab Emirates for seven years.

Durov said the company has had better experiences in the UAE. In addition to low taxes and few regulations, the “best part” is that country has not pressured the company to work with it to spy on users.

Carlson asked:

So, in the time that you’ve been here, there have been a number of wars and threats of war. Precursors to war. Have you had any pressure from the government here [in UAE)? Honestly, any pressure from the government here, to reveal a back door into Telegram or to ban anyone or to make any changes to your business?

“That’s the best part. For all the seven years we’ve been here, there’s been zero pressure coming from the UAE towards Telegram,” he said. “They’ve been very supportive, very helpful, and it’s a big contrast [to] whatever we’ve experienced before.”

He said the company has been “receiving a lot of requests” to work with governments. When there is clearly something like “terrorist activity,” the company does assist. In other cases where it was legitimate free speech, Telegram ignores them.

Asked to give an example of “censorship” and privacy violations, Durov related how his company received conflicting letters from American congressional leaders related to the investigation into the violence at the Capitol on January 6, 2021.

Democrats in Congress,”requested that we would share all the data we had in relation to what they called this uprising. And we checked it with our lawyers, and they said, you better ignore it,” Durov recalled. “But the letter seemed very serious. And, the letter said, ‘if you fail to comply with this request, you will be in violation [of], you know, the US Constitution or something.”

He said two weeks later Republican leaders sent the company a letter telling the company that complying with the request for data would also violate the US Constitution.

“So, we got two letters that said, whatever we do, we’d be violating the US Constitution,” he said.

Biggest censorship threat is from Google, Apple

Even after going through numerous requests to hand over data or install spying software on Telegram, Durov said the biggest threat to free speech is not even from governments, but from Big Tech platforms Google and Apple.

“I would say the largest pressure [on] Telegram is not coming from governments. It’s coming from Apple and Google,” Durov said. “So, when it comes to freedom of speech, those two platforms, they could basically censor whatever is you can access on your smartphone.”

The companies can remove Telegram from the app stores, which would hurt the company.

“Obviously a big chunk of the world’s population would lose access to a valuable tool,” he said.

The “application of the rules” seems political at times, Durov said. The “rules themselves” are “pretty general,” such as no “violence” or “publicly available child abuse materials,” he said. “It’s hard to disagree with that.”

But Telegram and the Big Tech platforms clash over the “interpretation” of the rules.

“And sometimes they do agree, to their credit,” he said.

However, Durov said he is “hopeful” that past censorship of political movements is truly in the past, saying he does not ” necessarily believe that things are going to get worse.”

He contrasted the platform’s neutral position when it comes to the politics of its users with companies such as Facebook.

“I think Facebook in particular has a lot of reasons apart from being based in the US for doing what they’re doing. I think every app and platform plays its own role,” he said. “You know, we believe that humanity does need a neutral platform like Telegram that will be respectful to people’s privacy and freedoms.”

Durov affirmed he does not want to get involved in any specific political side, when Carlson asked if he wanted to be a “player in world politics.”

He still avoids the United States due to his past experiences with law enforcement.

Company would not take down content skeptical of COVID restrictions

While other platforms, including YouTube, Facebook, and Twitter, would remove or throttle content critical of COVID measures (such as forced masking and COVID jabs), Durov said Telegram did not.

He told Carlson:

We’re a neutral platform. We were helping governments to spread their message about the lockdowns and masks and vaccines. We got dozens of governments who we really [helped with], you know, some of their information, but we also didn’t want to restrict the voices that were critical of all those measures. We thought it made sense for…opposing views to collide and hopefully, you know, see some truth come out of those debates. And of course, we got criticized for that. But, looking back, I think it was the right strategy.

“During the pandemic, we I think were one of the few or maybe the only major social media platform that didn’t, take down accounts or that were skeptical, in relation to some of these measures,” he said.

Durov also said he thinks Elon Musk is doing a good job running X (formerly known as Twitter).

“What X is trying to do is in line [with] what we are building: innovation, trying different things, trying to give power to the creators, trying to get the ecosystem economy going,” he said.

“Those are all exciting things. And I think we need more companies like that,” he said.

“I don’t know if it’s good for humanity that Elon is spending so much time on Twitter making it better, but it’s definitely good for the social media industry.”

Carlson ended by telling Durov he is “rooting” for the company. Carlson’s show has since opened its own Telegram channel.

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Business

New capital gains hike won’t work as claimed but will harm the economy

Published on

From the Fraser Institute

By Alex Whalen and Jake Fuss

Capital taxes are among the most economically-damaging forms of taxation precisely because they reduce the incentive to innovate and invest.

Amid a federal budget riddled with red ink and tax hikes, the Trudeau government has increased capital gains taxes. The move will be disastrous for Canada’s growth prospects and its already-lagging investment climate, and to make matters worse, research suggests it won’t work as planned.

Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50 per cent inclusion rate, which means that 50 per cent of the gain in the asset’s value is subject to taxation at the individual or business’ marginal tax rate. The Trudeau government is raising this inclusion rate to 66.6 per cent for all businesses, trusts and individuals with capital gains over $250,000.

The problems with hiking capital gains taxes are numerous.

First, capital gains are taxed on a “realization” basis, which means the investor does not incur capital gains taxes until the asset is sold. According to empirical evidence, this creates a “lock-in” effect where investors have an incentive to keep their capital invested in a particular asset when they might otherwise sell.

For example, investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate. This means the Trudeau government is likely overestimating the potential revenue gains from its capital gains tax hike, given that individual investors will adjust the timing of their asset sales in response to the tax hike.

Second, the lock-in effect creates a drag on economic growth as it incentivises investors to hold off selling their assets when they otherwise might, preventing capital from being deployed to its most productive use and therefore reducing growth.

And Canada’s growth prospects and investment climate have both been in decline. Canada currently faces the lowest growth prospects among all OECD countries in terms of GDP per person. Further, between 2014 and 2021, business investment (adjusted for inflation) in Canada declined by $43.7 billion. Hiking taxes on capital will make both pressing issues worse.

Contrary to the government’s framing—that this move only affects the wealthy—lagging business investment and slow growth affect all Canadians through lower incomes and living standards. Capital taxes are among the most economically-damaging forms of taxation precisely because they reduce the incentive to innovate and invest. And while taxes on capital do raise revenue, the economic costs exceed the amount of tax collected.

Previous governments in Canada understood these facts. In the 2000 federal budget, then-finance minister Paul Martin said a “key factor contributing to the difficulty of raising capital by new start-ups is the fact that individuals who sell existing investments and reinvest in others must pay tax on any realized capital gains,” an explicit acknowledgement of the lock-in effect and costs of capital gains taxes. Further, that Liberal government reduced the capital gains inclusion rate, acknowledging the importance of a strong investment climate.

At a time when Canada badly needs to improve the incentives to invest, the Trudeau government’s 2024 budget has introduced a damaging tax hike. In delivering the budget, Finance Minister Chrystia Freeland said “Canada, a growing country, needs to make investments in our country and in Canadians right now.” Individuals and businesses across the country likely agree on the importance of investment. Hiking capital gains taxes will achieve the exact opposite effect.

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