Opinion
UCP Tax Cut Hits the Target but Misses the Mark
Opinion by Cory G. Litzenberger
Well for fear of being lynched, let me talk about how I think the UCP’s Job Creation Tax Cut may be (partially) incorrect.
While I applaud politicians for laying out their plans in advance of an election, my fear is that the plan is too slow in implementation and cuts too far.
I think a tax cut needs to be moderate and quick – not slow and deep.
Here are my thoughts for various tax changes we need to do in Alberta:
General Corporate Income Tax Rate:
Instead of cutting by 1% per year over 4 years, bring it back by 2% to 10% from 12% in the first year and keep it there.
By delaying the cut as the UCP currently proposes, it could reduce the impact it will have on the economy as the change to the bottom line will not be impacted enough for a corporation to make larger investment until year two or three of the plan.
Quicker action by government will result in quicker action by business, resulting in quicker action in the economy and job creation.
10% also still makes us the lowest jurisdiction in Canada.
Personal Income Tax change to 3 brackets:
– 8% for first $50k
– 10% for the next $100k
– 12% for over $150k
This reduction from 10% on the first $50,000 saves roughly $600 in personal income tax (after factoring in the basic personal tax credit) for every individual making more than $50,000 a year.
It also saves 2% for those making under $50,000 currently.
This is an important cut in order to reward people that call Alberta home, as you will see below.
A rich person paying 12% in Alberta on their personal income is better than them paying 0% because they live somewhere else.
Harmonized Sales Tax (HST) 5%
Yes, I think we need to remove the inflationary and regressive carbon tax as it is way too high of a burden and causes a ripple effect in inflationary pricing how it was implemented.
However, I suggest we implement a 5% HST (which is a flow-through for businesses and does not have the same impact on pricing).
Now, hear me out before you break out the yellow vest!
Currently, anyone visiting our province as either a tourist or a temporary worker from another province are using our infrastructure like roads, water, and yes, even hospital emergency rooms.
When these non-Alberta residents file their personal tax returns, they file it based on their home province of residence as of December 31. Since most of them don’t have a permanent residence in Alberta, this results is them paying income taxes to other provinces, while using our infrastructure for free.
Other provincial residents not paying any taxes in Alberta while here unfairly puts the cost on all of us that live here.
If we implemented an HST similar to the GST program, low income households would still receive credit back (just like GST credit) to offset most (if not all) of any HST they pay.
The $600 in income tax savings we mentioned above for everyone else, is equivalent to $12,000 of taxable supplies consumed ($24,000 in a double income household where they each make over $50,000 of income).
Don’t forget that basic grocery and shelter do not have sales taxes, and if Andrew Scheer gets elected, neither will basic home heating.(https://twitter.com/andrewscheer/status/854364648388182016)
This income tax reduction of $600 to $1,200 would offset much of the sales tax you would pay, but would now start to charge non-Alberta resident visitors and workers.
The reason for an HST instead of a PST is that currently, an HST is required to be charged by all GST registrants across Canada. If you are a GST registrant, you are automatically an HST registrant.
For example, in my office in Red Deer, I have to charge my Ontario customers HST and send it in to the government even though my business is in Alberta.
An HST could reduce the potential for tax leakage out of our province by funneling it back to Alberta because of other retailers in other provinces requiring to charge it on things purchased outside of, or shipped to, Alberta.
Results
– a competitive corporate tax rate to attract investment and do it quicker than the original UCP plan;
– low personal income tax to attract wealthy individuals (and their tax residency) back to Alberta to make it their place of residence, again, quickly;
– removal of the inflationary carbon tax;
– insertion of a relatively low cost HST so that we can get back some of that transfer payment money from the residents of other provinces.
In Summary
– Reduce Corporate moderately and quickly.
– Reduce Individual moderately and quickly.
– Remove Carbon tax.
– Implement an HST.
I know that the slight mention of a sales tax in Alberta makes the hair on the back of your neck stand straight up, and for many conservative politicians, they would resign before suggesting it. However, even as a fiscal-conservative tax accountant like myself, I believe that if it is implemented properly with tax reductions elsewhere, it can add to the bottom line for the province.
I also think it can do so without being a burden to those that live here by taxing those that don’t.
———
Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html
It can be safely said that the 2024 U.S. presidential election couldn’t have gone much worse for legacy media in that country. Their biases, conceits and outright falsehoods throughout the arduous years-long slog toward Nov. 5 were exposed that night. Resulting in the simultaneous disaster (for them) of Donald Trump winning a thunderous re-election and their predictive polling being shown to be Democratic propaganda.
Only a handful of non-establishment pollsters (Rasmussen, AtlasIntel) got Trump’s electoral college and overall vote correct. Example: One poll by Ann Selzer in Iowa—a highly-rated pollster with a supposedly strong record—showed a huge swing towards Harris in the final week of the election race, putting her three points up over Trump. He ended up winning Iowa by 13.2 points (Selzer now says she’s retiring.)
Throughout, these experts seemed incapable of finding half the voter pool. By putting their thumb on the scale during debates, the representatives of the so-called Tiffany networks and newspapers signalled abdication of their professional code. Their reliance on scandal-sheet stories was particularly glaring.
Just a few lowlights: “the brouhaha over a shock comedian at a Trump rally calling Puerto Rico “a floating island of garbage”. Unhinged outgoing POTUS Biden then called GOP voters “garbage”. So Trump made an appearance as a garbage man, to the snarky disapproval of CBS News chief anchor Nora O’Donnell.
Then there was Whoopi Goldberg on The View predicting Trump will “break up interracial marriages and redistribute the white spouses: “He’s going to deport and you, put the white guy with someone else… The man is out there!” Media ran with this one, too.
Worse, disinformation and lying reached such a proportion that Team Trump turned its campaign away from the networks and legacy papers down the stretch, creating a new information pathway of podcasts and social media sites (such as Joe Rogan, Theo Von and Adin Ross) that promise to be the preferred route for future candidates looking for non-traditional voters. A few prominent media owners sought to save themselves by refusing to endorse a presidential candidate, but the resulting tantrum by their Kamala-loving staff negated the effort.
In the past, poor performances by the Media Party might be dismissed or ignored. But the cataclysmic ratings drops for CNN and MSNBC paired with collapse in sales for blue-blood rags such as the New York Times, Washington Post and L.A. Times spoke to the public’s disgust with people they’ve always trusted to play it straight.
(Now Comcast has announced it’s spinning off MSNBC and its news bundle to save their profitable businesses. Staff members in these places are now panicking. As such the new administration promises to be indifferent to the former media powers-that-be as Trump mounts radical plans to recast the U.S. government. )
As noted here the disgraceful exercise in journalism was cheered on by their compatriots here in Canada. “In the hermetically sealed media world of Canada, natives take their cues from CNN and MSNBC talking points both of which employ Canadians in highly visible roles. (Here’s expat Ali Velshi famously describing on NBC that the 2020 George Floyd riots that burned for weeks— destroying billions in damages while resulting in multipole deaths— as “generally peaceful”.)
The narratives of Russiagate, drinking bleach, “fine people” to Hunter Biden’s laptop— long ago debunked down south— are still approved wisdom in Canada’s chattering class. Especially if America’s conflagration election can be used to demonstrate the good sense and judgment of Canada’s managerial and media class.
The clincher for star-struck Canadians was the overwhelming Kamala love from the Hollywood crowd. Virtually every high-profile actor/ singer/ writer embraced the woman who was parachuted into the nomination in a coup— even as the same glitterati raved about anti-democratic Trump. From Beyoncé to Bilie Eilish to Bruce Springsteen, their support was been a winner in Canada’s fangirl/ fanboy culture.”
Talk about backing a loser. Which leaves us asking what to expect from formerly respected media in the upcoming (it will come, won’t it?) defenestration of Justin Trudeau and Jagmeet Singh, probably in spring of 2025. One Toronto Star piece might provide a clue to the bunkered approach of Canada’s globalists. “Europe is leaving Donald Trump’s America behind. Should Canada do the same? As American democracy dives into darkness, Canada is facing difficult choices.”
CPC leader Pierre Poilievre has made it abundantly clear his thoughts on the bias of media. To save billions, he is making a major overhaul— even closure of CBC (not Radio Canada)— as a campaign pledge. He’s also said he will remove the slush fund now propping up failed establishment news organizations that employ unionized workers bent of crushing the Conservatives.
His scorn is obvious after watching media’s reverential treatment of Trudeau’s fake “murdered” Rez children stunt or the silence accompanying PMJT’s sacking of his indigenous Justice minister Jodie Wilson Raybould. Lately, a deadpan Poilievre humiliated a callow CBC reporter quoting “experts” by asking her “what experts?” Her unpreparedness leaves her floundering as Poilievre calls her question another “CBC smear job”.
Perhaps the classic Poilievre humbling of a reporter occurred in 2023 in a Kelowna apple orchard when a reporter seeking to score points with his Woke colleagues saw the bushwhack rebound on him. After numerous failed attempts at belling the cat, the local reporter played his ace card.
Question: Why should Canadians trust you with their vote, given … y’know … not, not just the sort of ideological inclination in terms of taking the page out of Donald Trump’s book, but, also —
Poilievre: (incredulous) What are you talking about? What page? What page? Can you gimme a page? Gimme the page. You keep saying that … “
No page was produced and the cringeworthy interview collapsed.
Needless to say, the reporter was absolved by his water-carrying colleagues. Here was Shannon Proudfoot of the Toronto Star: “Kicking a journalist in the shins over and over then turning the exchange into a social-media flex is telling on yourself…” Venerable CBC panelist/ Star columnist Chantal Hébert echoed the pauvre p’tit take. “Agreed”.
For these press box placeholders it’s all too reminiscent of the acid-drenched style of former PM Stephen Harper, a stance that turned them to Trudeau cheerleaders in 2015. Which is to say we shouldn’t have high hopes for balance when the writ is finally dropped.
Poilievre has several more ministers (Melissa Lantsman, Garrett Genuis) skilled in exposing media imbalance, so we can expect full-blown pushback from the paid-for media from the usual suspects when Trudeau finally succumbs to reality. One drawback for the Conservatives could be the absence of national podcasters such as Rogan or Von to which they can pivot.
But make no mistake, However much Canada’s press corps denies it, the public has turned away from Mr Blackface and the politics of privilege. They’d best anticipate a rough ride ahead.
Bruce Dowbiggin @dowbboy is the editor of Not The Public Broadcaster A two-time winner of the Gemini Award as Canada’s top television sports broadcaster, he’s a regular contributor to Sirius XM Canada Talks Ch. 167. His new book Deal With It: The Trades That Stunned The NHL And Changed hockey is now available on Amazon. Inexact Science: The Six Most Compelling Draft Years In NHL History, his previous book with his son Evan, was voted the seventh-best professional hockey book of all time by bookauthority.org . His 2004 book Money Players was voted sixth best on the same list, and is available via brucedowbigginbooks.ca.
I Testified Before a Senate Committee About the CBC
I recently testified before the Senate Committee for Transport and Communications. You can view that session here. Even though the official topic was CBC’s local programming in Ontario, everyone quickly shifted the discussion to CBC’s big-picture problems and how their existential struggles were urgent and immediate. The idea that deep and fundamental changes within the corporation were unavoidable seemed to enjoy complete agreement.
I’ll use this post as background to some of the points I raised during the hearing.
You might recall how my recent post on CBC funding described a corporation shedding audience share like dandruff while spending hundreds of millions of dollars producing drama and comedy programming few Canadians consume. There are so few viewers left that I suspect they’re now identified by first name rather than as a percentage of the population.
Since then I’ve learned a lot more about CBC performance and about the broadcast industry in general.
For instance, it’ll surprise exactly no one to learn that fewer Canadians get their audio from traditional radio broadcasters. But how steep is the decline? According to the CRTC’s Annual Highlights of the Broadcasting Sector 2022-2023, since 2015, “hours spent listening to traditional broadcasting has decreased at a CAGR of 4.8 percent”. CAGR, by the way, stands for compound annual growth rate.
Dropping 4.8 percent each year means audience numbers aren’t just “falling”; they’re not even “falling off the edge of a cliff”; they’re already close enough to the bottom of the cliff to smell the trees. Looking for context? Between English and French-language radio, the CBC spends around $240 million each year.
Those listeners aren’t just disappearing without a trace. the CRTC also tells us that Canadians are increasingly migrating to Digital Media Broadcasting Units (DMBUs) – with numbers growing by more than nine percent annually since 2015.
The CBC’s problem here is that they’re not a serious player in the DMBU world, so they’re simply losing digital listeners. For example, of the top 200 Spotify podcasts ranked by popularity in Canada, only four are from the CBC.
Another interesting data point I ran into related to that billion dollar plus annual parliamentary allocation CBC enjoys. It turns out that that’s not the whole story. You may recall how the government added another $42 million in their most recent budget.
But wait! That’s not all! Between CBC and SRC, the Canada Media Fund (CMF) ponied up another $97 million for fiscal 2023-2024 to cover specific programming production budgets.
Technically, Canada Media Fund grants target individual projects planned by independent production companies. But those projects are usually associated with the “envelope” of one of the big broadcasters – of which CBC is by far the largest. 2023-2024 CMF funding totaled $786 million, and CBC’s take was nearly double that of their nearest competitor (Bell).
But there’s more! Back in 2016, the federal budget included an extra $150 million each year as a “new investment in Canadian arts and culture”. It’s entirely possible that no one turned off the tap and that extra government cheque is still showing up each year in the CBC’s mailbox. There was also a $93 million item for infrastructure and technological upgrades back in the 2017-2018 fiscal year. Who knows whether that one wasn’t also carried over.
So CBC’s share of government funding keeps growing while its share of Canadian media consumers shrinks. How do you suppose that’ll end?
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