Tag Archives: Green Party of Canada

Tax On, Tax Off: Kenney calls for tax cuts for corporations, Greens call for PST in Alberta

United Conservative Party leader Jason Kenney says his party will cut Alberta’s corporate income tax down to 8 per cent from 12 per cent, which would give Alberta by far the lowest corporate taxes in Canada. Alberta’s current corporate income tax rate for corporations earning more than $500,000 in annual income was increased from 10 percent to 12 per cent by Rachel Notley‘s New Democratic Party government after the 2015 election.

Jason Kenney Alberta Politics

Jason Kenney

Kenney’s call to cut corporate income taxes is not surprising, as his party sees significant cuts to both taxes and government spending as a solution to the Alberta government’s fiscal woes.

Kenney’s ideological aversion to taxes and public spending in general is well known going back to his time as a spokesperson for the Canadian Taxpayers Federation more than 20 years ago.

Next to the criminal law power that we wield in Parliament, the power to collect taxes is the most significant and potentially destructive power. Some have said that the power to tax is the power to destroy,” Kenney said as a Reform Party MP in Ottawa in December 1998. 

Lowering the corporate income tax this low is not an original idea, but it is unclear what advantage cutting corporate income taxes this low would really give Albertans.

The Alberta Corporate Tax Amendment Act introduced by Revenue Minister Greg Melchin in 2002 set a target of 8 per cent for the corporate income tax rate, but the Progressive Conservative government never let the rate dip below 10 per cent.

Kenney has also pledged to repeal the provincial government’s carbon tax, cut the minimum wage, and has mused about cutting personal income taxes for those paying into the highest tax brackets by reimposing the 10 per cent flat tax.

Joel French Alberta

Joel French

Notley’s promise to increase corporate income taxes in 2015 to fill the gap left by plummeting oil and gas royalties led to the most notable exchange in that election’s leaders’ debate, when PC Party leader Jim Prentice got in trouble for sharply responding to Notley’s that “I know math is difficult.” The “math” comment was received poorly, to say the least, and the reaction from Alberta’s corporate leaders helped the NDP soar in the polls until election day.

Albertans gave this government a strong mandate to act on its promises: That was to ask top-income earners to pay a little bit more for the betterment of all and to ask corporations who benefited the most during stronger economic times to contribute fairly to rebuilding our province,” Finance Minister Joe Ceci told the Globe & Mail shortly before the corporate income taxes were increased in 2015.

It is notable that even under Notley’s NDP government, Alberta’s corporate income taxes today are still lower than the 15.5 per cent they were when Ralph Klein became Premier in 1992 (which was then the third-lowest corporate income tax rate in Canada). Notley’s NDP also lowered the small business tax rate from 3 per cent to 2 per cent, which is also significantly lower than the 6 per cent rate when Klein became premier. But this is not necessarily something to brag about in a province that continues to struggle with its chronic over-reliance on royalty revenues.

As noted by Public Interest Alberta executive director Joel French in a May 2018 opinion-editorial in the Edmonton Journal, “Applying the tax system of any other province to Alberta would raise us a minimum of $11.2 billion in additional annual revenue, more than covering the projected $8.8-billion deficit in this year’s budget.

With a young and growing population, slashing the corporate income taxes that help fund the day to day operations of government, like the public education and public health care that Albertans depend on to preserve our high quality of life, sounds short-sighted.

With a lack of policy proposals and campaign promises coming from the NDP during this pre-election period, this is another example of Kenney and the UCP dominating the media coverage going into the provincial election.

Carl Svoboda Green Party Alberta Calgary Edgemont

Carl Svoboda

Meanwhile, the Green Party of Alberta has strapped itself to one of the third rails of Alberta politics by calling for the creation of a Provincial Sales Tax. Many political watchers and economists have called for the creation of a sales tax to help diversify the government’s revenue sources, but politicians of all stripes have been extremely reluctant to take a position in favour of a PST in Alberta.

The other parties are terrified to mention a sales tax other than to denounce it, but the Green Party is not. It is time for Alberta to start acting like a normal province and bring in a sales tax,” said Green Party public finance shadow critic Carl Svoboda, who is running in Calgary-Edgemont.

In another political universe, this might have been something championed by the NDP, but not in Alberta in 2019.

With no MLAs in the Legislature, the Alberta Greens may have little to lose by calling for the creation of a PST, but by taking this position they do open the door to a much-needed PST debate a little bit wider.

Child poverty in Alberta drops by half in two years

Alberta has the lowest child poverty rate in the country at 5 per cent, having managed to cut its rate in half in just two years, between 2015 and 2017. University of Calgary economist Ron Kneebone told The Star Calgary that the the national Canada Child Benefit and the Alberta Child Benefit were the biggest reasons for this improvement.

Elizabeth May comes to Alberta

Speaking of the Green Party, federal Green Party leader Elizabeth May will visit Alberta later this week with stops in Calgary on March 7 and Edmonton on March 8, 2019.

Notley claims victory in the courts, but opponents of the Kinder Morgan Trans Mountain Pipeline are not going to just disappear.

Another victory for our economy. Another victory for our climate plan. Another victory for the pipeline and another victory for all Albertans and all Canadians,” was the message Alberta Premier Rachel Notley reportedly delivered at a press conference in St. Albert. Notley was of course referring to the decision by the Federal Court of Appeal to dismiss the British Columbia government’s bid to challenge a National Energy Board ruling allowing Kinder Morgan Inc. to bypass City of Burnaby bylaws meant to block the expansion of the corporation’s Trans Mountain Pipeline.

As Kinder Morgan and its supporters in government in Edmonton and Ottawa are racking up the legal and regulatory wins in this pipeline dispute, losses in the courts might do little to stop opposition to the pipeline.

Opponents of the pipeline, including Burnaby Mayor Derek Corrigan, have said that despite the court ruling they will continue to oppose the pipeline. In a demonstration of non-violent civil disobedience last Friday, Green Party leader Elizabeth May and Burnaby-South NDP MP Kennedy Stewart were arrested by RCMP for protesting in a court determined no-protest zone outside of Kinder Morgan’s terminal in Burnaby.

South of the border, a Massachusetts judge ruled that more than a dozen protesters who blocked the construction of a gas pipeline were “not responsible” after they argued their actions to try and stop climate change were a legal “necessity.” I do not know if a similar outcome would be possible in Canadian courts, but I suspect we will begin to hear some of the same arguments in the coming months.

In the chambers of parliament in Ottawa, the Senate unanimously adopted a motion introduced by BC Conservative Senator Richard Neufeld urging Prime Minister Justin Trudeau to “bring the full weight and power of his office to ensure that Kinder Morgan’s Trans Mountain Expansion Project gets completed on schedule.” This week, Independent Senator Doug Black of Calgary introduced Bill S-245, the Trans Mountain Pipeline Project Act, which would declare the pipeline “to be works for the general advantage of Canada.”

It is not clear what Neufeld believes “the full weight and power” of the Prime Minister’s Office includes, but aside from Trudeau sending in the Army or suspending constitutional rights of Canadians, we should expect the protests to intensify. The Trudeau government in Ottawa has been clear about its support for the pipeline, but the political calculus, including the 18 incumbent Liberal MPs in British Columbia, has meant most federal pressure on the BC government is likely being applied behind the scenes.

Notley was right to point out the contradiction in the BC government’s position opposing the Kinder Morgan pipeline while trying to jump-start the west coast liquid natural gas industry. Just as Albertans have discovered in this pipeline dispute, provincial governments can sometimes be much more sympathetic to their own local industries than the opinions of neighbouring provinces.

There are contradictions on both sides of this debate.

Opponents of the pipeline are happy to point out the conflicting messages sent by Notley’s government, which pushes the expansion of an oilsands pipeline while lauding its Climate Leadership Plan. The success of the oil pipeline has been made central to the Alberta NDP government’s political future, The awkward shoehorning of the pipeline issue into the provincial budget was the most recent example.

It feels unlikely this issue will be resolved anytime soon and, despite rulings in the courts, opponents of Kinder Morgan’s Trans Mountain Pipeline will likely get louder and more determined before the pipeline is expanded, if ever.

A federal by-election in Cowboy Country

Earlier this week, I wrote about the interesting by-election in Fort McMurray-Athabasca, today I look at the other federal by-election in Alberta that will take place on June 30, 2014.

Macleod Federal Election Results 2006 2008 2011 by-election 2014

Situated on the eastern slopes of of the Rocky Mountains, the Conservative machine appears strong in southern Alberta’s Macleod riding. Although growth in the communities of Okotoks and High River, which was devastated by flooding in the summer of 2013, have brought many new voters in the riding, Macleod is a much more traditionally Conservative riding than its northern by-election counter-part.

John Barlow Macleod Conservative

John Barlow

Respected local newspaper editor John Barlow won a hotly contested nomination race in which he faced loud criticism from the National Firearms Association for his support of RCMP gun-seizures during the High River floods. The gun lobby endorsed his nomination opponents but have remained silent since the nomination vote was held.

This is Mr. Barlow’s second attempt at political office, having recently run as the Highwood Progressive Conservative candidate against Wildrose leader Danielle Smith in the 2012 provincial election. Unlike the Calgary-Centre by-election of 2012, which saw a federal split among PC and Wildrose supporters, it appears that most Wildrosers are lining up behind Mr. Barlow’s campaign (or, at least, are not publicly opposing him).

One media report from the riding suggest that Prime Minister Stephen Harper may become a defining issue of this by-election campaign. Mr. Harper and his family are said to have recently purchased property near Bragg Creek in the northern portion of Macleod. The prime minister’s wife, Laureen Harper, was seen voting at the Conservative nomination meeting on March 8, 2014.

Dustin Fuller Liberal by-election macleod Justin Trudeau 2014

Liberal candidate Dustin Fuller and Justin Trudeau (from the Dustin Fuller for Macleod Facebook page).

Mr. Barlow so far faces only two challengers. Liberal Dustin Fuller, an oil and gas worker has been campaigning for months. Mr. Fuller works in the energy sector and is a former president of the University of Lethbridge Students’ Union.

Liberal leader Justin Trudeau has visited the riding numerous times, drawing curious crowds in Okotoks and High River. The last time a federal Liberal was elected in this region, was when his father, Pierre Trudeau, led his party to a majority victory in the 1968 election.

Larry Ashmore Green Party Macleod By-election Alberta

Larry Ashmore

The Green Party has chosen Larry Ashmore to carry their banner in the by-election. Mr. Ashmore is the former leader of the Evergreen Party (now renamed the Green Party of Alberta) and was a  candidate in the 2008 and 2012 provincial elections in Foothills-Rockyview and Livingstone-Macleod . In the 2006 federal election, he placed fourth with 3,075 votes (6.18% of the vote) as the Green candidate in Macleod.

Aileen Burke is expected to be nominated as the NDP candidate. Mr. Burke is listed as the treasurer of the Lethbridge-East provincial NDP constituency association and was a trustee candidate for the Lethbridge School District No. 51 in the October 2013 municipal elections.