Per-capital spending on public services: Alberta vs. ROC

5. Per-capital spending on public services: Alberta vs. ROC

6. Expenditures as a percentage of GDP – Alberta versus Rest of Canada (ROC)

8. The REAL Problem: We’ve blown a hole in our revenue base

9. Major Tax and Royalty Giveaways • Flat Tax, 2001 • $1.3 billion lost in 2001 - $1.5 billion in today’s dollars • Corporate Tax Cuts • $1 billion a year based on 1999 rate • Royalty Breaks – missed targets • $37 billion lost over last decade • Latest Royalty Giveaway – Drilling Stimulus Initiatives • Total cost to taxpayers: $2.8 billion in 2009 and 2010 • Original estimate of Drilling Stimulus initiatives: $1.5 billion • Total government budget deficit for 2009 and 2010 was $1.8 billion, so the entire budget deficit plus an additional $1 billion was spent on these royalty giveaways

12. Results of Revenue Hole • Can’t fund what we value • Teacher and education support layoffs • Pressure on health-care system • Freezes and rollbacks in post-secondary education • Freezes and rollbacks in social services • Highest out-of-pocket expenses and user fees in Canada

13. The Alberta Disconnect Wealthiest Province → Declining Services

14. Solutions (Short Term) • Draw from Sustainability Fund (more than $10 billion still in the kitty) • Use cash from land sales windfall ($842 million from June 1st sale alone) • Cancel Drilling Incentive Program • Cancel plans to spend $2 billion in CCS

15. Solutions (Long Term) • Fix the hole • Replace flat tax with progressive tax • Increase corporate tax to Canadian average • Drive a harder bargain on royalties

16. Time for a grownup conversation about revenue

17. “It’s time for us to consider an increase in corporate and personal tax.” • Former Premier Peter Lougheed

18. We don’t have to fear tax increases to corporations and high-income earners

19. Corporate Taxes • Globe and Mail and TD investigations show corporations haven’t been re-investing savings or using them to create jobs • Using money to pay down debt, increase dividends, increase CEO compensation and/or increase cash reserves

21. We don’t have to fear tax increases to high-income earners Government itself admits that we could collect $11 billion more in taxes and still be the lowest tax jurisdiction in Canada!

22. Top three reasons why we don’t have to worry about energy companies leaving if we drive a harder bargain on royalties …

23. Reason 1: We have the oil

24. Reason 2: They have nowhere else to go

25.  Reason 3: Americans Want Our Oil “The more Canadian oil for America, the better. The province (Alberta) provides the United States with so much of our energy needs.” South Carolina Republican Lindsay Graham  “Boosting trade with Canada offers tremendous opportunity to improve our energy security.” Indiana Senator Richard G. Lugar “When it comes to the oil we import from other nations, obviously we've got to look at neighbours like Canada and Mexico that are stable and steady and reliable sources." U.S. President Barrack Obama

26. All this means: Bargaining Power

27. Examples of Leaders Who Stood Up to Big Oil … and Won • Peter Lougheed • Danny Williams • Sarah Palin

28. Albertans don’t have to settle for less!