Published Jan 09, 2025 in The Sherwood Park News • 3 minute read
At the beginning of every year, I tend to reflect upon the year that just ended and start budgeting for the year ahead. Lately I have been thinking about how much has changed in the past year and even further back to 2019.
Six years ago, I was still climbing onto roofs, turning wrenches, and putting solar panels to work. Now, I put my energy into representing the community where I grew up and ran a business. A lot has changed, especially the cost of living in the province I love.
After six years under the UCP government, life in Alberta is less affordable, which is precisely the opposite of what they promised.
An article in The Calgary Herald in May 2024 analyzed Statistics Canada’s numbers and noted that Alberta’s former “affordability advantages” have been slipping away since 2019. The services we receive, compared to the prices we pay, are not adding up to any kind of Alberta advantage.
With that in mind, here are the priorities I’m looking for the government to address in the upcoming 2025 Budget:
Income taxes
Albertans pay some of the highest personal income tax rates in Canada. While every Canadian pays the same federal income tax rate, each province and territory charges its residents separate income taxes at varying rates.
Alberta’s personal income tax rates are higher than those of BC, Ontario, Yukon, NWT, and Nunavut because the UCP has kept them high despite promising to lower them — a promise they have failed to keep.
Albertans pay 52.8 per cent more personal income tax, on the first $100,000 they earn annually, compared to people living in BC or Ontario.
The average Canadian worker’s income is $51,600, in which case income tax costs $950 more in Alberta than in Ontario, for example. That is not insignificant, and it makes a big difference for an average household in Alberta.
Auto insurance rates
In addition to the highest provincial taxes, Albertans also pay the highest car insurance of any province in Canada.
The UCP removed the Alberta NDP’s cap on car insurance, allowing rates to skyrocket without any checks and balances for the past five years. After public outcry, Finance Minister Nate Horner recently legislated a 15 per cent rate increase over the next two years, trying his best to sell the disappointing decision as a solution.
Albertan families will once again have to find room in their household budgets for higher auto insurance rates this year and prepare for another hike next year.
Property taxes
Albertans will also see their property taxes increase in 2025.
Some municipalities, like Strathcona County, have managed to keep the increase under four percent. Unfortunately, several others including Red Deer, are increasing property taxes by over ten percent.
It’s easy to blame city councils, but the numbers tell us a different story:
In 2019, provincial government transfers to municipalities totalled more than $3 billion. As we head into 2025, that number has decreased to $1 billion. Even though Alberta’s population grew significantly during that time, Albertan cities, towns, villages, and counties were left with one-third of the funding they had five years ago.
Municipalities in Alberta are not allowed to operate with deficit budgets, so when the province doesn’t pay up, they have no choice but to reduce services or increase property taxes to make up for the provincial shortfall.
The UCP is focused on anything but affordability. Their record on income taxes, car insurance, and supporting municipalities is proof.
My colleagues and I at the Alberta NDP will continue to advocate for issues that matter to you. Your priorities — housing, health care, putting food on the table and ensuring your family has access to a strong education system — are ours.
It’s time to make life more affordable for Albertans. It’s time the UCP government started working for Albertans instead of piling on costs we cannot afford.
Kyle Kasawski is the MLA for Sherwood Park. If you have questions about this column or any provincial issues, he would like to hear from you. Find his contact information at meetkyle.ca.
P.S. Our annual “Bowling for Charity” event is happening soon! Sign up at this link by Friday to join the fun, Sunday, January 19, at Sherwood Bowl. We had so much fun last year supporting 5 local Sherwood Park charities.
