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Little Movement Wednesday On Red Deer’s Proposed 2017 Property Tax Rate

Published

8 years ago

2 minute read

By Sheldon Spackman

It’s day eight of Operating Budget deliberations at Red Deer City Hall today and the current proposed property tax rate increase for 2017 still stands at 2.1 percent.

Items of note from Wednesday’s meeting include Council’s decision to no longer buy Renewable or “Green” Energy Certificates at a cost of $56,000 to local tax payers. Another $42,000 would be self-supported. Much discussion took place regarding this item, with many Councillors feeling that the City is already doing many things to lead the way in environmental stewardship. Most also felt that with Red Deer and all Alberta Municipalities now paying for the new Carbon Tax, this would be a cost they could do without this year.

Elsewhere, City Councillors approved a recommendation to go ahead with implementing “Speed on Green” cameras at some of the City’s high collision intersections. The recommendation was made by Red Deer’s Traffic Safety Working Group who cited this as a current safety issue in the City. Officials feel this could result in a $250,000 increase in net revenue for Policing Services and add it is already working well in other communities such as Calgary and Spruce Grove. Speed on Green cameras will result in tickets for drivers who speed or excelerate through intersections. City Manager Craig Curtis says there will be a two month approval period before the cameras are installed, then a one month grace period where warnings will first be issued to offending drivers.

Finally, Council also opted to reduce late night service on one of the City’s transit routes, citing low ridership numbers. The route that runs out of Sorensen Station in downtown Red Deer will see late night service come by every hour now instead of the previous every half hour.

Operating Budget deliberations continue at Red Deer City Hall today and are slated to wrap up on Friday, January 20th.

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Broken ‘equalization’ program bad for all provinces

Business

Broken ‘equalization’ program bad for all provinces

Published on November 21, 2024

By

From the Fraser Institute

By Alex Whalen  and Tegan Hill

Back in the summer at a meeting in Halifax, several provincial premiers discussed a lawsuit meant to force the federal government to make changes to Canada’s equalization program. The suit—filed by Newfoundland and Labrador and backed by British Columbia, Saskatchewan and Alberta—effectively argues that the current formula isn’t fair. But while the question of “fairness” can be subjective, its clear the equalization program is broken.

In theory, the program equalizes the ability of provinces to deliver reasonably comparable services at a reasonably comparable level of taxation. Any province’s ability to pay is based on its “fiscal capacity”—that is, its ability to raise revenue.

This year, equalization payments will total a projected $25.3 billion with all provinces except B.C., Alberta and Saskatchewan to receive some money. Whether due to higher incomes, higher employment or other factors, these three provinces have a greater ability to collect government revenue so they will not receive equalization.

However, contrary to the intent of the program, as recently as 2021, equalization program costs increased despite a decline in the fiscal capacity of oil-producing provinces such as Alberta, Saskatchewan, and Newfoundland and Labrador. In other words, the fiscal capacity gap among provinces was shrinking, yet recipient provinces still received a larger equalization payment.

Why? Because a “fixed-growth rule,” introduced by the Harper government in 2009, ensures that payments grow roughly in line with the economy—even if the gap between richer and poorer provinces shrinks. The result? Total equalization payments (before adjusting for inflation) increased by 19 per cent between 2015/16 and 2020/21 despite the gap in fiscal capacities between provinces shrinking during this time.

Moreover, the structure of the equalization program is also causing problems, even for recipient provinces, because it generates strong disincentives to natural resource development and the resulting economic growth because the program “claws back” equalization dollars when provinces raise revenue from natural resource development. Despite some changes to reduce this problem, one study estimated that a recipient province wishing to increase its natural resource revenues by a modest 10 per cent could face up to a 97 per cent claw back in equalization payments.

Put simply, provinces that generally do not receive equalization such as Alberta, B.C. and Saskatchewan have been punished for developing their resources, whereas recipient provinces such as Quebec and in the Maritimes have been rewarded for not developing theirs.

Finally, the current program design also encourages recipient provinces to maintain high personal and business income tax rates. While higher tax rates can reduce the incentive to work, invest and be productive, they also raise the national standard average tax rate, which is used in the equalization allocation formula. Therefore, provinces are incentivized to maintain high and economically damaging tax rates to maximize equalization payments.

Unless premiers push for reforms that will improve economic incentives and contain program costs, all provinces—recipient and non-recipient—will suffer the consequences.

Authors:

Alex Whalen  and Tegan Hill
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National

Liberals, NDP admit closed-door meetings took place in attempt to delay Canada’s next election

Published on November 12, 2024

By

From LifeSiteNews

By Anthony Murdoch

Pushing back the date would preserve the pensions of some of the MPs who could be voted out of office in October 2025.

Aides to the cabinet of Prime Minister Justin Trudeau confirmed that MPs from the Liberal and New Democratic Party (NDP) did indeed hold closed-door “briefings” to rewrite Canada’s elections laws so that they could push back the date of the next election.

The closed-door talks between the NDP and Liberals confirmed the aides included a revision that would guarantee some of its 28 MPs, including three of Trudeau’s cabinet members, would get a pension.

Allen Sutherland, who serves as the assistant cabinet secretary, testified before the House of Commons affairs committee that the changes to the Elections Act were discussed in the meetings.

“We attended a meeting where the substance of that proposal was discussed,” he said, adding that his “understanding is the briefing was primarily oral.”

According to Sutherland, as reported by Blacklock’s Reporter, it was only NDP and Liberal MPs who attended the secret meetings regarding changes to Canada’s Elections Act via Bill C-65, An Act to Amend the Canada Elections Act before the bill was introduced in March.

As reported by LifeSiteNews before, the Liberals were hoping to delay the 2025 federal election by a few days in what many see as a stunt to secure pensions for MPs who are projected to lose their seats. Approximately 80 MPs would qualify for pensions should they sit as MPs until at least October 27, 2025, which is the newly proposed election date. The election date is currently set for October 20, 2025.

Sutherland noted when asked by Conservative MP Luc Berthold that he recalled little from the meetings, but he did confirm he attended “two meetings of that kind.”

“Didn’t you find it unusual that a discussion about amending the Elections Act included only two political parties and excluded the others?” Berthold asked.

Sutherland responded, “It’s important to understand what my role was in those meetings which was simply to provide background information.”

“My role was to provide information,” replied Sutherland, who added he could not provide the exact dates of the meetings.

MPs must serve at least six years to qualify for a pension that pays $77,900 a year. Should an election be called today, many MPs would fall short of reaching the six years, hence Bill C-65 was introduced by the Liberals and NDP.

The Liberals have claimed that pushing back the next election date is not over pensions but due to “trying to observe religious holidays,” as noted by Liberal MP Mark Gerretsen.

“Conservatives voted against this bill,” Berthold said, as they are “confident of winning re-election. We don’t need this change.”

Trudeau’s popularity is at a all-time low, but he has refused to step down as PM, call an early election, or even step aside as Liberal Party leader.

As for the amendments to elections laws, they come after months of polling in favour of the Conservative Party under the leadership of Pierre Poilievre.

A recent poll found that 70 percent of Canadians believe the country is “broken” as Trudeau focuses on less critical issues. Similarly, in January, most Canadians reported that they are worse off financially since Trudeau took office.

Additionally, a January poll showed that 46 percent of Canadians expressed a desire for the federal election to take place sooner rather than the latest mandated date in the fall of 2025.

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