{"id":18794,"date":"2016-03-13T11:57:33","date_gmt":"2016-03-13T16:57:33","guid":{"rendered":"http:\/\/olduvai.ca\/?p=18794"},"modified":"2016-03-13T11:57:34","modified_gmt":"2016-03-13T16:57:34","slug":"economics-in-one-cheque","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=18794","title":{"rendered":"Economics in one cheque"},"content":{"rendered":"

Economics in one cheque<\/a><\/h3>\n
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\"check\"<\/a>On December 1, 2005, Bill 43 \u201cAlberta Resource Rebate Statutes Amendment Act<\/a>\u201d received Royal Assent in the Alberta Legislature enabling a one-time rebate to be paid to nearly all Albertans residents in Alberta on September 1, 2005 who had filed a 2004 tax return. The refunds were a product of a larger-than-expected surplus generated mostly by high energy revenues. Rebate cheques were sent out in late January 2006.<\/p>\n

The $1.4 billion resource rebate program was controversial, with many people arguing that it would be better if government spent the surplus on other priorities: Health, education, post-secondary, infrastructure, social services, etc. Polls at the time revealed a similar number of people in favour of the prosperity cheques as the number opposed.<\/p>\n

This program is sometimes used as an example of wasteful government spending. The\u00a0assertion<\/a>\u00a0is that benefits would have been greater if the government had spent $1.4 billion on the priorities above compared to the benefits generated from the estimated 3.5 million cheque recipients each spending $400 as they each saw fit.<\/p>\n

Above is the photocopied cheque I was issued. Emulating Bastiat and Hazlitt, this cheque can serve as a focal point economic analysis.<\/p>\n

In Alberta, subterranean oil and gas deposits are not privately owned. The provincial government sets the terms and conditions to choreograph development and it fixes royalty rates. The\u00a0oil sands royalty rate<\/a>\u00a0is equal to the greater of: (a) the gross revenue royalty (1% \u2013 9%) for the period, and (b) the royalty percentage (25% \u2013 40%) of net revenue for the period. The royalty percentage of net revenue is also indexed to the price of West Texas Intermediate (WTI). The royalty percentage is 25% when the WTI price is less than or equal to $55\/bbl, rising linearly to a maximum of 40% when the price reaches $120\/bbl.<\/p>\n

…click on the above link to read the rest of the article…<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Economics in one cheque On December 1, 2005, Bill 43 \u201cAlberta Resource Rebate Statutes Amendment Act\u201d received Royal Assent in the Alberta Legislature enabling a one-time rebate to be paid to nearly all Albertans residents in Alberta on September 1, 2005 who had filed a 2004 tax return. The refunds were a product of a […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2],"tags":[1082,103,244,12584,7617,12899],"class_list":["post-18794","post","type-post","status-publish","format-standard","hentry","category-economics","tag-alberta","tag-canada","tag-economics-2","tag-government-spending","tag-mises-institute","tag-rebate"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18794","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18794"}],"version-history":[{"count":1,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18794\/revisions"}],"predecessor-version":[{"id":18795,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/18794\/revisions\/18795"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}