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Alberta’s debt on track for $70 billion by Sunday

According to the Alberta government’s own projections, the province is still on target to reach $100 billion in debt by 2023.

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Alberta’s deep plunge into the red continues and is set to hit a milestone this weekend.

“The Alberta government’s debt is increasing at $290 per second and will reach $70 billion on Sunday, Jan 19, at 11:06 a.m.,” said Franco Terrazzano, Alberta Director of the Canadian Taxpayer’s Federation (CTF) in a press release Friday.

“The government’s most recent budget is increasing total spending by $174 million between 2018 and 2022 and adding $30 billion to the provincial debt tab.”

Even though the government has cut numerous services and plans to eliminate thousands of jobs, it hasn’t made a dent in projected debt levels.

According to the Alberta government’s own projections, the province is still on target to reach $100 billion in debt by 2023.

“Taxpayers are in for a rude awakening when it comes time to pay the piper,” Terrazzano said.

Alberta’s credit was also downgraded for a seventh time after the Jason Kenney-led government introduced the budget in October, which increases the potential interest rates on the province’s borrowing.

For the 2019/2020 fiscal year, which ends in March, the Alberta government borrowed an additional $2 billion dollars. According to that same budget, the government intends to borrow an additional $2 billion dollars more in the 2020/2021 fiscal year.

Additionally, the government has reduced corporate taxes in the hopes of setting a fire under the economy and repealed the carbon tax on roughly 50 per cent of emissions producers. The former will result in a $4.7 billion dollar loss of revenue over the next four years (according to the government’s budget) and the latter reduced revenue by approximately $2 billion each year.

The government hopes the corporate income tax drop will result in the creation of enough jobs to replace the loss of corporate tax with increased personal taxes.

Some research has shown that employment can increase by around 0.6 per cent for every percentage point decrease in corporate income tax rates, University of Calgary economist Trevor Tombe told the Star in November. It could bring Alberta’s unemployment rates back to around 4.6 per cent by 2023.

Bev Dahlby, research director and distinguished fellow, tax and economic growth at the University of Calgary published a report in September that looked at the potential for job growth under the corporate income tax structure the UCP is implementing.

Dahlby said the modelling suggests that the reduction in Alberta’s corporate tax rate could be reflected in job creation within the next decade.

“This would translate into … employment increases of approximately 58,000 in 2022 and 172,000 by 2029.”  

News

UPDATED: Saskatchewan election called

Saskatchewan Premier Scott Moe will send the province into an election Tuesday.

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Saskatchewan Premier Scott Moe will send the province into an election Tuesday.

Moe took to twitter Monday night to tell voters they would be going to the polls in the middle of a COVID-19 pandemic.

“Tomorrow, I will ask Lt. Gov. Russ Mirasty to dissolve the Legislature,” Moe tweeted.

“This will be quite a different #skvotes campaign –but a very important one that will ask Saskatchewan voters one question: Who do you trust to lead Saskatchewan’s economic recovery?”

When the legislature was dissolved, Moe’s Saskatchewan Party held a 46-13 lead over the NDP.

Moe was sworn in as premier in 2018.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
TWITTER: Twitter.com/nobby7694

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CORY MORGAN WEBCAST: Wild goose hunt, Alberta style

An interview with Jason Siliker of Canadian Premier Hunts on the multiple times that the RCMP interrupted his goose hunt.

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B.C. Liberals vow to cancel PST for one year; return at 3 per cent

“Everybody pays the PST, so everybody saves under the B.C. Liberal plan,” said Andrew Wilkinson

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B.C. Liberals say, if elected, they will help the economy recover by removing the 7 per cent provincial sales tax for one year.

After a year, a Liberal government would set the PST at 3 per cent until the economy recovers.

The federal GST is currently 5 per cent.

“British Columbians have lost confidence in the direction of the province and the weak economic record of the NDP. B.C. families and small businesses need help now, which is why a B.C. Liberal government will immediately eliminate the PST for one year — saving you money right away, getting more people working, and bringing investment back to B.C.,” said B.C. Liberal Leader Andrew Wilkinson.

“Countless people are still out of work, small businesses are facing bankruptcy, and the public health threat from COVID-19 is still very real.

“Eliminating PST puts more money in people’s pockets, stimulates growth for struggling small business, and helps British Columbians who are struggling to get by. This is a vital step to rebuild our economy.”

The Liberals say a family of four earning $60,000 per parent will save $1,714 in the first year, followed by an additional $979 in the second year. 

“Everybody pays the PST, so everybody saves under the B.C. Liberal plan,” said Wilkinson.

The Canadian Taxpayers Federation is applauding the pledge.

“We pay the PST on everything from used cars to toilet paper so this would save everyone a lot of money,” said Kris Sims, B.C. Director of the CTF.

“The best way to save people money is for governments to stop taking so much of it in the first place.

“We hope all of the parties can match or beat this promise so we can get serious about tax cuts during this election.”

In the 2019-20 budget year, British Columbians paid more than $7.5 billion in the PST.

“We need to do all we can to jolt our economy back to life and eliminating the PST would clear a lot of hurdles for working people and struggling businesses to get things rolling again,” said Sims.

“People know how to spend their money much better than the government does.”

B.C. residents go to the polls Oct. 24.

Dave Naylor is the News Editor of the Western Standard
dnaylor@westernstandardonline.com
TWITTER: Twitter.com/nobby7694

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