Economy
Kenney hopes to begin reopening Alberta economy in May, working ‘around the clock’ on COVID-19 relaunch – Global News
Premier Jason Kenney told reporters on Tuesday that he hopes to begin reopening Alberta’s economy next month, and at the same time, to begin removing restrictions on social activities related to the COVID-19 pandemic.
He had previously suggested he believed such a relaunch may not begin until June but said he was encouraged by some of the revised modelling data and the province’s overall response to the pandemic.
READ MORE: Coronavirus: A closer look at Alberta’s relaunch strategy
Kenney spoke about what his government has dubbed the province’s “relaunch strategy” after he revealed new COVID-19 modelling that suggests Alberta’s current projected trajectory for coronavirus spread is improving from previous forecasts.
Updated modelling scenarios continue to estimate that Alberta’s outbreak will reach its peak in late May.
“However, the number of Albertans hospitalized at the peak of the virus is predicted to be lower than originally estimated,” the provincial government said in a news relase.
“This reflects Alberta’s experience over the past few weeks and the proportion of cases actually entering hospital and intensive care units.”
READ MORE: Alberta updates COVID-19 modelling, adds low ‘likely’ scenario
[ Sign up for our Health IQ newsletter for the latest coronavirus updates ]
The premier said that while the government has no firm dates yet on when to begin reopening the economy, he plans to move forward with that goal “gradually, prudently.”
“[There likely] won’t be significant gaps,” Kenney said in terms of how Alberta’s relaunch may compare to Saskatchewan’s plans.
“We are working around the clock on our phased approach to relaunch.”
Kenney said he hopes to announce some details about the relaunch later this week. He noted that reopening parts of the economy and lifting some social restrictions will require Albertans to be vigilant and cautious about preventing the spread of the novel coronavirus in order to be successful.
Because western provincial economies are somewhat integrated and a number of Alberta communities near provincial borders see steady traffic crossing the border in both directions, Kenney said he plans to speak to B.C. Premier John Horgan and Saskatchewan Premier Scott Moe about co-ordinating their respective relaunches, at least in terms of recognizing how such actions could impact neighbouring provinces.
Kenney also noted that Alberta’s economy has not shut down to the same degree that some other provinces have.
“Alberta has kept more things open and active than I believe any other province,” he said, “For example, Quebec shut down all of their manufacturing and all of their construction industries. We’ve kept them open in Alberta.
“Other provinces have gone to a maximum of two people gathering in some cases. We allow 15 people to gather. So we have taken more of what I would call a risk-based approach and a less proscriptive approach than other provinces.”
Kenney also noted that even before there was an order to shut down non-essential retail in the province, he was walking down Edmonton’s busy Whyte Avenue and noticed most stores and restaurants were closed.
“So a lot of that was already happening voluntarily,” he said.
READ MORE: Could Edmonton reopen before other parts of Alberta due to promising COVID-19 data?
At the same new conference, Alberta’s chief medical officer of health said that while the province is “starting to see the results of the collective sacrifice we’ve made so far,” Albertans need to remain vigilant about following public health orders and recommendations as recent outbreaks show the spread of COVID-19 could still spike.
Kenney said despite his government’s plans to implement a phased relaunch, it is important for Alberta to know “we are a ways off from returning to our normal way of life.”
“The reality is that this virus will be with us and it will remain a threat as long as we have no effective treatments or vaccines against it,” Hinshaw said.
© 2020 Global News, a division of Corus Entertainment Inc.
Economy
Biden's Hot Economy Stokes Currency Fears for the Rest of World – Bloomberg
As Joe Biden this week hailed America’s booming economy as the strongest in the world during a reelection campaign tour of battleground-state Pennsylvania, global finance chiefs convening in Washington had a different message: cool it.
The push-back from central bank governors and finance ministers gathering for the International Monetary Fund-World Bank spring meetings highlight how the sting from a surging US economy — manifested through high interest rates and a strong dollar — is ricocheting around the world by forcing other currencies lower and complicating plans to bring down borrowing costs.
Economy
Opinion: Higher capital gains taxes won't work as claimed, but will harm the economy – The Globe and Mail
Alex Whalen and Jake Fuss are analysts at the Fraser Institute.
Amid a federal budget riddled with red ink and tax hikes, the Trudeau government has increased capital gains taxes. The move will be disastrous for Canada’s growth prospects and its already-lagging investment climate, and to make matters worse, research suggests it won’t work as planned.
Currently, individuals and businesses who sell a capital asset in Canada incur capital gains taxes at a 50-per-cent inclusion rate, which means that 50 per cent of the gain in the asset’s value is subject to taxation at the individual or business’s marginal tax rate. The Trudeau government is raising this inclusion rate to 66.6 per cent for all businesses, trusts and individuals with capital gains over $250,000.
The problems with hiking capital gains taxes are numerous.
First, capital gains are taxed on a “realization” basis, which means the investor does not incur capital gains taxes until the asset is sold. According to empirical evidence, this creates a “lock-in” effect where investors have an incentive to keep their capital invested in a particular asset when they might otherwise sell.
For example, investors may delay selling capital assets because they anticipate a change in government and a reversal back to the previous inclusion rate. This means the Trudeau government is likely overestimating the potential revenue gains from its capital gains tax hike, given that individual investors will adjust the timing of their asset sales in response to the tax hike.
Second, the lock-in effect creates a drag on economic growth as it incentivizes investors to hold off selling their assets when they otherwise might, preventing capital from being deployed to its most productive use and therefore reducing growth.
Budget’s capital gains tax changes divide the small business community
And Canada’s growth prospects and investment climate have both been in decline. Canada currently faces the lowest growth prospects among all OECD countries in terms of GDP per person. Further, between 2014 and 2021, business investment (adjusted for inflation) in Canada declined by $43.7-billion. Hiking taxes on capital will make both pressing issues worse.
Contrary to the government’s framing – that this move only affects the wealthy – lagging business investment and slow growth affect all Canadians through lower incomes and living standards. Capital taxes are among the most economically damaging forms of taxation precisely because they reduce the incentive to innovate and invest. And while taxes on capital gains do raise revenue, the economic costs exceed the amount of tax collected.
Previous governments in Canada understood these facts. In the 2000 federal budget, then-finance minister Paul Martin said a “key factor contributing to the difficulty of raising capital by new startups is the fact that individuals who sell existing investments and reinvest in others must pay tax on any realized capital gains,” an explicit acknowledgment of the lock-in effect and costs of capital gains taxes. Further, that Liberal government reduced the capital gains inclusion rate, acknowledging the importance of a strong investment climate.
At a time when Canada badly needs to improve the incentives to invest, the Trudeau government’s 2024 budget has introduced a damaging tax hike. In delivering the budget, Finance Minister Chrystia Freeland said “Canada, a growing country, needs to make investments in our country and in Canadians right now.” Individuals and businesses across the country likely agree on the importance of investment. Hiking capital gains taxes will achieve the exact opposite effect.
Economy
Nigeria's Economy, Once Africa's Biggest, Slips to Fourth Place – Bloomberg
Nigeria’s economy, which ranked as Africa’s largest in 2022, is set to slip to fourth place this year and Egypt, which held the top position in 2023, is projected to fall to second behind South Africa after a series of currency devaluations, International Monetary Fund forecasts show.
The IMF’s World Economic Outlook estimates Nigeria’s gross domestic product at $253 billion based on current prices this year, lagging energy-rich Algeria at $267 billion, Egypt at $348 billion and South Africa at $373 billion.
-
Media9 hours ago
DJT Stock Rises. Trump Media CEO Alleges Potential Market Manipulation. – Barron's
-
Media11 hours ago
Trump Media alerts Nasdaq to potential market manipulation from 'naked' short selling of DJT stock – CNBC
-
Investment10 hours ago
Private equity gears up for potential National Football League investments – Financial Times
-
Media24 hours ago
DJT Stock Jumps. The Truth Social Owner Is Showing Stockholders How to Block Short Sellers. – Barron's
-
Health24 hours ago
Type 2 diabetes is not one-size-fits-all: Subtypes affect complications and treatment options – The Conversation
-
Business24 hours ago
Tofino, Pemberton among communities opting in to B.C.'s new short-term rental restrictions – Vancouver Sun
-
Business22 hours ago
A sunken boat dream has left a bad taste in this Tim Hortons customer's mouth – CBC.ca
-
News22 hours ago
Best in Canada: Jets Beat Canucks to Finish Season as Top Canadian Club – The Hockey News