Many generous Albertans want to do more for those experiencing poverty

Remarkably, many already generous Albertans wish to do more for the poor, disabled and underprivileged. Between government and non-profit programs, Alberta already operates a social safety net that is the envy of many other nations and multiple provinces.

Nonetheless, many generous Albertans believe we should do more. How can we achieve that goal without creating unsustainable public expenditures and more debt for our children to pay off?

Here’s an assessment of the alternatives for how Albertans could do more for the poor and disadvantaged. Some of these ideas are promising, while others, which you’ve likely heard about, are counterproductive.

Provincial spending comparison

Before we assess where and how Albertans could do more, we should recognize that Alberta already compares favourably to other provinces in spending on health, education and social protection.

Source: Comparing Ontario’s Fiscal Position with Other Provinces

While there’s always an opportunity to do more, Albertans can be proud of the amount of government social support being provided already.

Tell your MLA that you support significant, sustainable funding of public programs.

Reduce or eliminate provincial debt

The biggest opportunity Albertans have to do more for the poor, disabled and underprivileged is to pay off the provincial debt and use the interest we would no longer pay to invest more in social services.

Source: Government of Alberta Fiscal Plan Securing Alberta’s Future 2023 – 26

Reducing debt would avoid raising taxes for Albertans. We could then choose to spend up to $3 billion annually on various public programs, including social services or lower taxes.

Tell your MLA that you support efforts to reduce Alberta’s debt to increase funding of public programs.

Donate more dollars to charities

Albertans already donate more money to charities than Canadians in other provinces.

Source: Statista

Nonetheless, Albertans could choose to increase their donations. These donations will help our rich ecosystems of non-profits expand their social programs.

Consider if you could increase your donations to your favourite non-profits. Encourage your circle to join you.

Volunteer more hours

Albertans volunteer approximately as many hours as Canadians in other provinces.

Source: Statistics Canada

Albertans could choose to increase their volunteer hours working with their favourite charity. The demand for more resources is a constant challenge for many charities.

Invite your family, friends and neighbours to join you in volunteering more. There’s plenty of evidence that volunteering strengthens families and communities.

Raise income taxes on wealthy Albertans

Raising income tax revenue from wealthy Albertans may raise some more money, but not as much as some claim. The top 20% of Canadian households already pay over 50% of taxes collected.

Source: Fraser Institute

Given the significant current income tax rates, further increases are more likely to encourage wealthy Albertans to engage in more elaborate tax avoidance and deferral measures. Also, wealthy Albertans tend to be potentially mobile investors and job creators.

Annoying wealthy Albertans by raising taxes won’t generate much revenue and risks them moving. That doesn’t build prosperity for Albertans.

Tell your MLA that you see no value in raising provincial income tax rates.

Raise income taxes on wealthy corporations

Corporations don’t pay taxes, despite the inaccurate statements you’ve heard about “fair share” from some political parties. Corporations only remit taxes. Those taxes are paid indirectly by:

1. Shareholders through lower dividends. More citizens are shareholders than they realize through their investments and pension funds.
2. Employees through lower payroll income.
3. Customers through higher prices.

Raising taxes on corporations is clever for some provinces because politicians can claim they’re holding the line on tax increases for individuals and families while still funding services.

Most citizens don’t realize they’re indirectly paying part of those corporate taxes. There’s also a limit to how far any province can raise corporate taxes before adversely affecting investment and employment.

Source: Why Alberta Business Taxes are Coming Down, NOT Going UP

Be grateful that Alberta has the lowest corporate tax rate. Raising taxes on corporations is counterproductive to building a vibrant economy that can fund social services.

Tell your MLA that you support Alberta’s low provincial corporate tax rate.

Raise provincial income taxes

Raising income taxes from most Albertans can increase provincial revenue significantly. However, most Albertans believe they pay enough taxes even though they pay less than Canadians in other provinces.

Source: Comparing Ontario’s Fiscal Position with Other Provinces

Alberta is fortunate to receive significant crown royalty income from oil and natural gas, enabling lower taxes and higher provincial expenditures for many items, including social services.

Tell your MLA that you see no value in raising provincial income tax rates.

What Albertans can do more

Albertans who want to do more for the poor, disabled and underprivileged while not raising taxes and debt can:

1. Support government efforts to eliminate provincial debt.
2. Donate more dollars to charities.
3. Volunteer more hours.

This chart summarizes the participation of Canadians in volunteering.

Source: Statistics Canada

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While many Canadians already volunteer, there’sthere’s of opportunity to modestly increase participation and the average number of hours. That increased effort can significantly help our many socially-oriented non-profits.