Government Finances Archives - Page 5 of 11

Issues to follow in 2023- Analysis and Opinion- Part 2

9Jan

By Bob AscahNo Comments

Economic Data, Employment, Energy, Government Finances, Opinion/Research

Issues to follow in 2023- Analysis and Opinion- Part 2

Corrected 9 January 2023 Sovereignty Act applications- before the election? The application of the Sovereignty Act before the May provincial general election has a lot of moving parts. The Act came into force on 15 December, the date of royal assent. At present Premier Smith is constructing the case along with her finance minister Travis Toews and jobs and economic development minister Brian Jean of a competent government managing finances prudently and attracting investment. In a “Special Economic Report” sent out to UCP supporters on 7 January the Premier highlights that under her leadership 41,500 full time jobs were added in December, most from the private sector. The communication reminds Albertans that they enjoy the highest wages in Canada and the lowest taxes. On the fi...

Mid-year Financial Update- more spending, less revenue

5Dec

By Bob AscahNo Comments

Budget, Government Finances, Opinion/Research

Mid-year Financial Update- more spending, less revenue

Between the first quarter update at the end of August and the mid-year update of November 25th? a new premier took charge. In the tbf-2022-23-first-quarter (as its PDF is known) the province expected to collect $75.9 billion in revenue. In tbf-2022-23-mid-year total revenue is $76.9 billion. The Mid-term Update was called “Strong economy, strong Alberta” equating Alberta to economy. The press conference video is here. Spending Spending has increased from $62.1-billion in the 2022 Budget, including COVID-19 recovery spending, to $64.7-billion in the fiscal update or by $2.6-billion. Increased spending comes from $300-million in electricity rebates, “affordability initiatives” of $1.2-billion, $308 million for higher costs of selling oil, $340 million for Health including $174 million for th...

Despite soaring profits, oil companies are not paying enough for their environmental damage

4Dec

By Bob AscahNo Comments

Energy, Environment, Government Finances, Investment

Despite soaring profits, oil companies are not paying enough for their environmental damage

Published: December 1, 2022 1.55pm EST from the Conversation with permission. Re-published in newspaper edition of The Globe and Mail, Alberta section, on 17 December 2022 and online at Winnipeg Free Press on 2 December 2022. Re-published in The Tyee on 11 January 2023 At the end of the third quarter reporting season in October, the Big Four oilsands producers continued to report record profit levels. Collectively, Cenovus, CNRL, Imperial Oil and Suncor earned $5.8 billion in the third quarter and $23.1 billion in the first nine months of 2022. The average return on capital during the period was almost 25 per cent. The only minor hiccup was Suncor’s reported loss — primarily due to a non-cash impairment charge of $3.4 billion against its Fort Hills assets. Despite the write-down, Suncor s...

30Oct

By Bob AscahNo Comments

Budget, Fiscal History, Government Finances, Politics

Alberta PST- ESNA presentation

On Friday 21 October 2022, I made a presentation, along with two collaborators Ian Glassford and Elizabeth Smythe to the Economics Society of Northern Alberta on A Sales Tax for Alberta- Why and How published in June by Athabasca University Press. Here is the link to the Youtube channel of ESNA. Below are my slides for the presentation. Much of the question and answer session had much to do with the question of whether personal income tax is essentially a tax on consumption and why would you need to add another sales tax which is not progressive, unlike the personal income tax. Of course the progressivity of personal income tax is debatable given the vast number of specific credit and treatments on savings instruments which disproportionately benefit the well-off. The...

4Oct

By Bob AscahNo Comments

Budget, Credit Ratings, Fiscal History, Government Finances, Opinion/Research

PST- the Political Suicide Tax

Updated 12 October 2022 Above- Interview with Bob Ascah- Mornings 630 CHED- Provincial Sales Tax- 11 October 2022. The following article is reprinted with permission of The Conversation (link to article here) which was published Tuesday, 4 October 2022. In this article I make the now familiar plea to Alberta politicians to stop the roller coaster of provincial finances by bringing in a provincial sales tax. As the article explains Albertans have become used to paying low taxes while enjoying good or in some cases superior public goods and services than other provinces' citizens. However the "Alberta Tax Advantage" has a darker side. It has produced a hard core of politicians, business groups. and citizens who hate taxes, especially a sales tax. This type of magical thinking has produced...

29Sep

By Bob AscahNo Comments

Government Finances, Health, Intergovernmental, Investment, Opinion/Research

The UCP Front-runners- Policy Analysis

In this analysis I compare both the slogans and key phrases of the candidates. Slogans and phrases which are meant to attract members to vote for their preferred candidate and some of the detail of their top policy priorities. I also drill down to examine three policy areas in more detail. At the time of publication Danielle Smith is the presumed frontrunner with Travis Toews second and Brian Jean third. High level slogans compared According to Danielle Smith’s “Alberta First” campaign she will: Free Alberta from Ottawa’s control; Protect the rights and freedoms of Albertans; Unleash our economic potential and restore the Alberta Advantage, and Defeat Rachel Notley and the NDP in the next election Travis Toews promises responsible, stable leadership and promises to unite ...

A Sales Tax for Alberta- Why and How Book Launch

24Sep

By Bob AscahNo Comments

Fiscal History, Government Finances, Politics

A Sales Tax for Alberta- Why and How Book Launch

This past Thursday a book launch took place at the University Club to celebrate the publication of A Sales Tax for Alberta. Below are my speaking notes and pictures from this celebration. Speaking Notes- Book Launch Book launch A Sales Tax for Alberta- Why and How University Club, Edmonton 22 September 2022 My friends, the journey has not ended, it is just beginning! An inflated ego drove this project in the vain hope that we might convince one courageous politician to choose to take on this controversial project - a sales tax for Alberta. There are so many who helped this book across the goal line providing support and thoughtful feedback. First to my wife Linda who has been both a catalyst and huge support through what became a longer journey than expected. The initial germinatio...

10Sep

By Bob AscahNo Comments

Budget, Capital Spending, Government Finances, Opinion/Research, Uncategorized

First Quarter Update- Sunny update reveals some cracks

Jason Nixon, Treasury President and Minister of Finance Source: CTV News Edmonton However, there were several dark clouds covering the sun in the first quarter numbers that merit a mention. AIMCo has had another trying quarter like other investment managers Investment income is down $2.9-billion “due entirely to negative Heritage Fund and endowment fund income as financial markets deteriorated. These market losses could be reversed although with interest rates rising bond prices will continue to fall.” Hedging debt service costs hasn’t worked out very well Even though debt is declining significantly, debt servicing costs are rising because of debt swap costs. This is unusual because with rates at historic lows one would want to protect against rising rates by entering interest rate swap...

4Sep

By Bob AscahNo Comments

Banks, Energy, Government Finances, Opinion/Research

How the Big Four compare to the Big Five (banks)

How the Big Four with Big Five (banks) In this post I compare the financial performance between the Big Four oilsands producers and the five biggest banks by examining their first half performance. For the Big Four the data is for thee first two quarters and first half ending 30 June 2022. Since the banks have a unique fiscal year end, I compare their first two quarters for the period ending 30 April 2022. The purpose is to inform readers of the relative economic, financial and political power of the two industries. This is achieved by presenting the following metrics Total Revenue Net Income after taxes Royalties payable (not relevant to banks) Taxes payable Taxes payable as per cent of net income Total equity or capital Net income as percent of total equity Share buybacks Dividends pa...

30Jul

By Bob Ascah1 Comment

Budget, Fiscal History, Government Finances, Politics

A Sales Tax for Alberta and the UCP leadership race

Updated 16 August 2022 Well it didn't take too long for a conscientious staffer in Travis Toews' campaign to ferret out the 4 September opinion piece in the Edmonton Journal. In the article Smith setting forward what I think are credible views about Alberta's topsy-Turvey finances stated- Instead, he (Klein) bought off progressives by spending an excessive and unsustainable amount on public services and he bought off conservatives by lowering taxes below the cost of delivering programs. Now the public service screams holy hell at the mention of austerity and taxpayers say they aren’t prepared to pay a dime more. I’m here to tell you: Everyone — on both sides of the political spectrum — needs to suck it up. Alberta needs a three-step financial reset. Step 1: Liquidate the Heritage Fund...