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Braid: Tax cut idea hints at UCP return to election politics as usual – Calgary Herald

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Premier Jason Kenney says the government is considering a return to a flat provincial income tax rate for everyone, most likely at 10 per cent

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Fat trial balloons are suddenly floating high, just before Christmas and the start of a pre-election year.

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Premier Jason Kenney says the government is considering a return to a flat provincial income tax rate for everyone, most likely at 10 per cent, the rate that applied in Alberta from 2001 to 2015.

That system exempted the lowest earners from any tax, while the highest paid a pittance in proportion to their incomes.

Among conservatives, o ne argument for a flat tax was rarely mentioned aloud. Wealthy people will often move to a flat tax jurisdiction for the obvious reason.

They are expected to spend freely and use their wealth to generate economic activity at home.

Kenney came close to acknowledging this when he told the National Post in a year-end interview: “I think it was responsible for a huge amount of tax shifting to Alberta as people moved here to benefit …”

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It’s not clear there was ever a general economic benefit to the flat-tax era, but those were great years for the exotic car dealerships. You were as likely to get sideswiped by a Maserati as a Honda.

NDP Leader Rachel Notley had a quick response Friday.

“Going backwards to a flat tax would make working Alberta families pay even more every month so that the super-rich can get even richer,” she said.

“Under the UCP, Alberta families are already paying more income tax, more property tax, more school fees, more tuition, more interest on student debt, more camping fees, more for utilities and more for car insurance. A UCP flat tax would make life even more expensive for Albertans.”


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And yet, the flat tax never hurt Alberta governments politically. The Progressive Conservatives ruled in their usual splendour during the whole period, winning four straight elections with ease.

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Then came PC Premier Jim Prentice, one of the very few leaders to be completely honest about Alberta’s finances in an election campaign.

In 2015 he ran on a budget that brought in progressive income tax to deal with weakening finances. The oil price crash was just sinking in.

Prentice also imposed hikes to more than 50 other fees and charges.

He said Albertans should think hard about finances “and look in the mirror” to see who’s responsible.

Famously, he asserted that Alberta “is not an NDP province.”

Then it was. Prentice’s unique tactic — seeking a mandate based on fiscal frankness — completely backfired.

He ended up scaring Albertans more than the NDP did. So ended a regime that had lasted 43 years, impaled on a spasm of honesty.

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Notley’s NDP, which has never believed in the flat tax, delightedly kept the core of what Prentice created. (In the cruellest twist of all, he died in a plane crash in October 2016.)

The progressive tax was designed to raise more money, which the Treasury desperately needed.

Today, the need is more serious still, but Kenney suggests abolishing a system that raises more money.

The UCP itself has kept the progressive tax for nearly three years, preaching restraint and spending cuts in all that time.

Taxes have also been de-indexed, effectively increasing what Albertans pay. Only corporate tax rates have been cut.

But as we edge closer to the election in the spring of 2023, the UCP won’t repeat the Prentice political mistake.

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The current provincial tax rate is 10 per cent up to earnings of $131,220; 12 per cent from $131,220.01 to $157,464; 13 per cent from $157,464.01 to $209,952; and 14 per cent from $209,952.01 up to $314,928.

Above $314,928, the provincial tax maxes out at 15 per cent.

The marginal rate for combined provincial and federal tax is 36 per cent. It’s clear who’s hauling off the most cash.

But a couple of points shaved off income tax would not be scorned by the middle-income earners who pay most of it.

Kenney surely knows that. He’d love to manoeuvre the NDP into opposing a tax cut. Politics as usual tends to work around here.

Don Braid’s column appears regularly in the Calgary Herald.

Twitter: @DonBraid

Facebook: Don Braid Politics

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Youri Chassin quits CAQ to sit as Independent, second member to leave this month

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Quebec legislature member Youri Chassin has announced he’s leaving the Coalition Avenir Québec government to sit as an Independent.

He announced the decision shortly after writing an open letter criticizing Premier François Legault’s government for abandoning its principles of smaller government.

In the letter published in Le Journal de Montréal and Le Journal de Québec, Chassin accused the party of falling back on what he called the old formula of throwing money at problems instead of looking to do things differently.

Chassin says public services are more fragile than ever, despite rising spending that pushed the province to a record $11-billion deficit projected in the last budget.

He is the second CAQ member to leave the party in a little more than one week, after economy and energy minister Pierre Fitzgibbon announced Sept. 4 he would leave because he lost motivation to do his job.

Chassin says he has no intention of joining another party and will instead sit as an Independent until the end of his term.

He has represented the Saint-Jérôme riding since the CAQ rose to power in 2018, but has not served in cabinet.

This report by The Canadian Press was first published Sept. 12, 2024.

The Canadian Press. All rights reserved.

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‘I’m not going to listen to you’: Singh responds to Poilievre’s vote challenge

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MONTREAL – NDP Leader Jagmeet Singh says he will not be taking advice from Pierre Poilievre after the Conservative leader challenged him to bring down government.

“I say directly to Pierre Poilievre: I’m not going to listen to you,” said Singh on Wednesday, accusing Poilievre of wanting to take away dental-care coverage from Canadians, among other things.

“I’m not going to listen to your advice. You want to destroy people’s lives, I want to build up a brighter future.”

Earlier in the day, Poilievre challenged Singh to commit to voting non-confidence in the government, saying his party will force a vote in the House of Commons “at the earliest possibly opportunity.”

“I’m asking Jagmeet Singh and the NDP to commit unequivocally before Monday’s byelections: will they vote non-confidence to bring down the costly coalition and trigger a carbon tax election, or will Jagmeet Singh sell out Canadians again?” Poilievre said.

“It’s put up or shut up time for the NDP.”

While Singh rejected the idea he would ever listen to Poilievre, he did not say how the NDP would vote on a non-confidence motion.

“I’ve said on any vote, we’re going to look at the vote and we’ll make our decision. I’m not going to say our decision ahead of time,” he said.

Singh’s top adviser said on Tuesday the NDP leader is not particularly eager to trigger an election, even as the Conservatives challenge him to do just that.

Anne McGrath, Singh’s principal secretary, says there will be more volatility in Parliament and the odds of an early election have risen.

“I don’t think he is anxious to launch one, or chomping at the bit to have one, but it can happen,” she said in an interview.

New Democrat MPs are in a second day of meetings in Montreal as they nail down a plan for how to navigate the minority Parliament this fall.

The caucus retreat comes one week after Singh announced the party has left the supply-and-confidence agreement with the governing Liberals.

It’s also taking place in the very city where New Democrats are hoping to pick up a seat on Monday, when voters go to the polls in Montreal’s LaSalle—Émard—Verdun. A second byelection is being held that day in the Winnipeg riding of Elmwood—Transcona, where the NDP is hoping to hold onto a seat the Conservatives are also vying for.

While New Democrats are seeking to distance themselves from the Liberals, they don’t appear ready to trigger a general election.

Singh signalled on Tuesday that he will have more to say Wednesday about the party’s strategy for the upcoming sitting.

He is hoping to convince Canadians that his party can defeat the federal Conservatives, who have been riding high in the polls over the last year.

Singh has attacked Poilievre as someone who would bring back Harper-style cuts to programs that Canadians rely on, including the national dental-care program that was part of the supply-and-confidence agreement.

The Canadian Press has asked Poilievre’s office whether the Conservative leader intends to keep the program in place, if he forms government after the next election.

With the return of Parliament just days away, the NDP is also keeping in mind how other parties will look to capitalize on the new makeup of the House of Commons.

The Bloc Québécois has already indicated that it’s written up a list of demands for the Liberals in exchange for support on votes.

The next federal election must take place by October 2025 at the latest.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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Social media comments blocked: Montreal mayor says she won’t accept vulgar slurs

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Montreal Mayor Valérie Plante is defending her decision to turn off comments on her social media accounts — with an announcement on social media.

She posted screenshots to X this morning of vulgar names she’s been called on the platform, and says comments on her posts for months have been dominated by insults, to the point that she decided to block them.

Montreal’s Opposition leader and the Canadian Civil Liberties Association have criticized Plante for limiting freedom of expression by restricting comments on her X and Instagram accounts.

They say elected officials who use social media should be willing to hear from constituents on those platforms.

However, Plante says some people may believe there is a fundamental right to call someone offensive names and to normalize violence online, but she disagrees.

Her statement on X is closed to comments.

This report by The Canadian Press was first published Sept. 11, 2024.

The Canadian Press. All rights reserved.

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