This is an important document. It shows the @jkenney government made a multi-billion decision on bad data.
The UCP campaigned on the idea corporate tax cut would be “SELF-FINANCING” (our emphasis) because economic spin offs would lead to more government revenue elsewhere to offset the loss of corporate tax funds.
Classic 'trickle-down economics' here, folks
The UCP campaigned on the promise that their corporate tax cut would lead to an additional $1.2 billion (over pre-cut levels) and 55,000 more jobs by 2022-23.
Where did the UCP get the fantastic assertion that a huge tax cut to profitable corporations would actually increase revenue to the tune of $1.2 billion and increase jobs by 55,000?
Was this even real?
Government officials had a look and put it in the document we obtained…
Here’s the entire document.
It’s unusual to get such a thing unredacted.
It was written during the 2019 election, a few days after the UCP’s corp tax announcement.
Treasury Board and Finance Officials looked at the @Alberta_UCP election promises and found the studies they relied on “may be unreliable in the Alberta context”.
Alberta is different than the rest of Canada because oil and gas has a larger share of our economy.
Studies cited by @jkenney for his corporate tax break are “likely to be less representative of the experience Alberta will have in response to tax changes.”
In other words, Jason Kenney used bad information to justify his multi-billion decision to reduce corporate taxes.
The internal government document also states that “Oil and gas taxation relative to key competing jurisdictions does not appear to be a major barrier to investment in Alberta.”
Cutting corporate taxes won’t help the oil patch as much as Jason Kenney and the UCP say it will.
In fact, oil patch workers continue to lose their jobs as the corporate taxes drop.
The biggest, most public job losses were at Husky Energy where 370 workers lost their jobs in 2019 and spending will drop in 2020 by half a billion dollars. ctvnews.ca/business/husky…
Here’s something ***NEVER BEFORE RELEASED*** from our FOIP
A draft Cabinet Report shows why corporate tax breaks are not going to help the oil patch as much as the Kenney gov’t says they will: royalties come before corp taxes.
Jason Kenney and the UCP relied heavily on a 2012 study by Drs. Dahbly and Ferede. Their work centred on effects of BC’s corporate tax cut in the mid-2000s, then modelled a theoretical impact across Canada as a whole.
The AFL does not dispute the integrity of the work of Drs. Feredy and Dahlby.
Our issue is how Jason Kenney and the UCP used their work to justify the multi-billion decision to reduce corporate tax rates. This loss of revenue means service cuts, privatization, and job losses.
As the internal government briefing note shows, there are problems when applying a Canadian data set to Alberta because our economy is weighted more heavily towards oil and gas.
The bottom line:
The decision to cut taxes for profitable corporations will rob the treasury of billions of dollars.
It was based on ideology and justified with deliberately bad information.
It won't help Alberta's oil and gas industry as much as Jason Kenney says it will.
The UCP lied in the election.
Corporate tax cuts will not increase tax revenue by $1.2 billion by 2022 & the Kenney gov’t will fire 1,000s of teachers and nurses make up the loss of revenue from this colossal lie.
You can help us stand up to the Kenney government as it dismantles public services by joining our Resist Kenney’s Cuts campaign
The UCP promised us “engagement” on the idea of pulling our retirement security out of CPP to create a smaller standalone Alberta pension plan.
A handpicked member of their “engagement panel” recently sang the praises of the Canada Pension Plan (CPP).
#ableg #cdnpoli
🧵 1/X
In a 2018 paper, published by the Fraser Institute, Professor Moin Yahya concludes, “It should be obvious that the CPP enjoys a preferred status among pension plans. This gives it a huge cost advantage in the world of pensions.” 2/X
Professor Yahya argues one of the strengths of CPP is a large and diverse set of contributors and payees. This guards against skewed demographics, like aging populations. Smaller pensions, like the one the UCP proposes, don’t enjoy this advantage. 3/x
Here’s a “fun” fact: Kenney’s $13/hour minimum wage for students includes fines for those who refuse to tell their boss their education status.
$500 for the 1st offense.
$1,000 for the 2nd offense.
$2,000 for the 3rd & subsequent offenses. #ableg#cdnpoli
[thread]
That’s right, in @jkenney's Alberta, it’s OK to pay students $2/hour less than other minimum-wage workers. It’s also OK to fine students starting at $500 for those who refuse to tell their boss their education status so they can be paid less than other workers. #ableg#cdnpoli
Section 9(4) of the Employment Standards Regulation states that a worker “MUST PROVIDE, on the request of the employee’s employer, the information necessary for the employer to determine the minimum wage applicable to the employee..." (emphasis added) #AbLeg#cdnpoli
It is completely unacceptable for any provincial government to ask essential workers to now pay higher child-care fees to ensure they can go to work, so that the rest of us may get through this pandemic. @siobhanvipond#AbLeg#abpoli#canlab
All kids deserve a fair start. Yet, Alberta’s inconsistent, expensive, and incomplete delivery of child care means that many kids are being left behind, an ongoing situation only amplified during this public health emergency. @siobhanvipond#AbLeg#abpoli#canlab
The UCP government needs to step up and provide quality and accessible child care for essential workers now... @siobhanvipond #AbLeg#abpoli#canlab
We're live with @IATSE members to call on the government to revamp its support of the film and TV industry. #ableg
ACTRA members are also with us.
We're in a 38,000 square foot production facility that's current empty. But it doesn't have to be that way. All the ingredients for success are here in Alberta. Except a government that understands the needs of the industry.
How independent was Janice MacKinnon, the Chair of the Blue Ribbon Panel?
Internal government documents lead AFL to question Janice MacKinnon’s independence from UCP government. #AbLeg#abpoli#cdnpoli afl.org/afl_questions_…
Internal government emails show the @Alberta_UCP government wrote speaking notes and an opinion piece for Janice MacKinnon.
May 6, 2019, 4:32 pm – “Premier’s office would like an op-ed to go out from you as Chair. Can you look at the following draft, which is based on your speaking notes?”
[redacted]
Minister @DevinDVote: question #9 on your survey proposes "exempting small farms from employment standards legislation for waged, non-family workers." (not farm families)
Employment standards regulates minimum wage, among other things.
Please clarify how this is false. #AbLeg