Alberta Prosperity

Alberta’s Lost Advantage on Personal Income Tax Rates

— Feb 20, 2020

Alberta’s Lost Advantage on Personal Income Tax Rates finds that the province’s top combined personal income tax rate is now more than 10 percentage points higher than the top rate in several other energy-producing jurisdictions. Whereas in 2014, Alberta’s top PIT rate was the lowest in North America, now it is the 10th highest following tax increases by the provincial and federal governments, and a reduction of the federal top rate in the U.S.

Interest Costs and their Growing Burden on Canadians

— Feb 19, 2020

Interest Costs and their Growing Burden on Canadians finds that in fiscal year 2019-20, Ottawa will spend more than $24 billion on federal debt interest payments, as the federal debt has increased by more than $260 billion since the 2008-09 recession. The study also compares government debt interest costs among provinces.

Refining Alberta’s Equalization Gambit

— Jan 28, 2020

Refining Alberta’s Equalization Gambit argues that, despite popular misconceptions (particularly in Central Canada), Alberta can compel other provinces and the federal government to negotiate aspects of the Constitution including equalization. The essay cites past Supreme Court judgments and germane sections of the Constitution Act, 1982.

The Growing Debt Burden for Canadians

— Jan 16, 2020

The Growing Debt Burden for Canadians finds that, since 2007/08, the year before the last recession, combined federal and provincial debt has grown from $837.0 billion to a projected $1.5 trillion in 2019/20. The study also breakdowns provincial debt burdens based on several different measures.

Education Spending in Public Schools in Canada: 2020 Edition

— Dec 12, 2019

Education Spending in Public Schools in Canada, 2020 Edition finds that nominal spending on public schools across Canada has increased in every province in recent years. After adjusting for inflation and enrolment changes, per-student spending still increased in seven out of 10 provinces from 2012/13 to 2016/17, the most recent year of available Statistics Canada data.

What’s Changed, By How Much, and What Remains to be Done: An Analysis of Alberta’s Budget

— Dec 5, 2019

What’s Changed, By How Much, and What Remains to be Done: An Analysis of Alberta’s Budget finds that the Alberta government’s plan to eliminate the provincial deficit by reducing program spending by 1.6 per cent over the next four years is less aggressive—both by timeline and by the amount of spending reductions—than previous successful deficit-reduction plans by other governments across Canada, including in Alberta, Saskatchewan and at the federal level.

Recent Alberta Prosperity Commentaries and Blog Posts

Outflow of Albertans should set off alarm bells

Tegan Hill, Alex Whalen

Appeared in the Calgary Sun, October 13, 2021

Unlike Texas, Alberta government finances deteriorated due to spending-fuelled budget deficits.

Alberta’s upcoming referendum bigger than equalization

Tegan Hill, Niels Veldhuis

Appeared in National Newswatch, October 12, 2021

Reforms in the 1990s led to a marked decline in welfare dependency and reduced spending on social assistance.

Despite smaller projected budget deficit, Albertans can’t afford to discount province’s fiscal challenges

Tegan Hill

Appeared in the Calgary Sun, September 22, 2021

A boost in projected revenues this year have reduced the expected deficit for 2021/22, but this will only provide a small amount of relief.

Alberta government should use unexpected windfall to stop resource rollercoaster

Tegan Hill, Steve Lafleur

Appeared in the Calgary Sun, September 8, 2021

By limiting the amount of resource revenue included in the budget, the fund could restore discipline to government spending.

Report paints bleak picture of Alberta’s fiscal future

Ben Eisen

Appeared in the Edmonton Sun, September 1, 2021

The province's per-person spending is significantly higher than in Ontario, B.C. and Quebec.

With higher oil prices, Alberta government must avoid fiscal mistakes of the past

Tegan Hill

The price of Brent Crude oil could reach US$100 per barrel in 2022 due to a surge in demand.

Dividends to Albertans would ensure better maintenance of Heritage Fund

Tegan Hill

Appeared in the Edmonton Journal, August 19, 2021

If Alberta had followed Alaska’s model, Albertans could have received $101.5 billion in dividends.

Alberta needs robust fiscal rules that survive tough times

Tegan Hill

Appeared in the Calgary Sun, August 18, 2021

By making fiscal rules constitutional in nature, governments can protect them from being ignored.

Pressure mounts to change ‘stabilization’ program and increase payments to Alberta

Tegan Hill, Ben Eisen

Appeared in the Edmonton Sun, August 4, 2021

Alberta received just $249 million in payments despite a revenue loss of $7.2 billion.

Kenney government could restore Alberta’s tax advantage without big budget hit

Ergete Ferede, Tegan Hill

Appeared in the Calgary Sun, July 21, 2021

In 2015, the government replaced the single-rate personal income tax with five tiers that include a top rate of 15 per cent.