Prosperity Bonus
Encyclopedia
The Prosperity Bonus, also nicknamed Ralph bucks, announced in September 2005, is the name given to a program designed to pay money back to residents of the Canadian province of Alberta
as a result of a massive oil-fuelled provincial budget surplus.
Alberta Premier Ralph Klein announced that each person in Alberta would receive $
400 sometime in January 2006. This represented $1.4 billion (20%) of the $6.8 billion surplus. The money was not taxed by either the federal
or provincial governments.
All Albertans who were residents of the province as of September 1 and filed a 2004 tax return
with the Canada Revenue Agency
received the bonus, except for prison
ers, who did not qualify. Cheques for Albertans under 18 years of age were payable only to their primary caregiver (the mother in most cases), thus leaving parents to determine how their children's share was to be distributed or used. Homeless Albertans also qualified—the government pledged to work with inner-city agencies to ensure that the homeless receive their money. Other questions were unanswered. For example, it was unknown how spouses fleeing abusive relationships would receive their bonus if they were housed in a shelter.
Klein said more prosperity bonuses might follow if oil prices remained high but none were issued before he left office.
s or the abolition of health care
premiums, which as of January 2009 have been eliminated.
Outside Alberta, some believed that the program would generate resentment from Canadians who saw cheques delivered to every Albertan.
Ralphbucks also made it into national media after a handful of non-Albertans came forward to admit they had received Ralphbucks cheques to which they were not entitled, prompting criticism from the Canadian Taxpayers Federation.
Alberta
Alberta is a province of Canada. It had an estimated population of 3.7 million in 2010 making it the most populous of Canada's three prairie provinces...
as a result of a massive oil-fuelled provincial budget surplus.
Alberta Premier Ralph Klein announced that each person in Alberta would receive $
Canadian dollar
The Canadian dollar is the currency of Canada. As of 2007, the Canadian dollar is the 7th most traded currency in the world. It is abbreviated with the dollar sign $, or C$ to distinguish it from other dollar-denominated currencies...
400 sometime in January 2006. This represented $1.4 billion (20%) of the $6.8 billion surplus. The money was not taxed by either the federal
Government of Canada
The Government of Canada, formally Her Majesty's Government, is the system whereby the federation of Canada is administered by a common authority; in Canadian English, the term can mean either the collective set of institutions or specifically the Queen-in-Council...
or provincial governments.
All Albertans who were residents of the province as of September 1 and filed a 2004 tax return
Tax return
A tax return is a tax form that can be filed with a government body to declare liability for taxation in various countries:* Tax return * Tax return * Tax return * Tax return...
with the Canada Revenue Agency
Canada Revenue Agency
The Canada Revenue Agency is a federal agency that administers tax laws for the Government of Canada and for most provinces and territories, international trade legislation, and various social and economic benefit and incentive programs delivered through the tax system...
received the bonus, except for prison
Prison
A prison is a place in which people are physically confined and, usually, deprived of a range of personal freedoms. Imprisonment or incarceration is a legal penalty that may be imposed by the state for the commission of a crime...
ers, who did not qualify. Cheques for Albertans under 18 years of age were payable only to their primary caregiver (the mother in most cases), thus leaving parents to determine how their children's share was to be distributed or used. Homeless Albertans also qualified—the government pledged to work with inner-city agencies to ensure that the homeless receive their money. Other questions were unanswered. For example, it was unknown how spouses fleeing abusive relationships would receive their bonus if they were housed in a shelter.
Klein said more prosperity bonuses might follow if oil prices remained high but none were issued before he left office.
Criticisms
The program generated controversy both inside and outside Alberta. Although few Albertans turned down their cheques, some residents criticized what they saw as a pointless giveaway, and preferred to see the excess money put toward long-term benefits such as tax cutTax cut
A tax cut is a reduction in taxes. The immediate effects of a tax cut are a decrease in the real income of the government and an increase in the real income of those whose tax rate has been lowered. Due to the perceived benefit in growing real incomes among tax payers politicians have sought to...
s or the abolition of health care
Health care
Health care is the diagnosis, treatment, and prevention of disease, illness, injury, and other physical and mental impairments in humans. Health care is delivered by practitioners in medicine, chiropractic, dentistry, nursing, pharmacy, allied health, and other care providers...
premiums, which as of January 2009 have been eliminated.
Outside Alberta, some believed that the program would generate resentment from Canadians who saw cheques delivered to every Albertan.
Ralphbucks also made it into national media after a handful of non-Albertans came forward to admit they had received Ralphbucks cheques to which they were not entitled, prompting criticism from the Canadian Taxpayers Federation.