CALGARY, AB (April 2, 2015): Dr. David Swann is announcing the Alberta Liberal Fair Tax Plan aimed at fixing the broken revenue structure in Alberta.
“Moving the province off the resource revenue rollercoaster requires better options than what the premier is offering,” says Swann. “The Fair Tax Plan will deliver real tax breaks to lower and middle income families, small businesses, and ensure all Albertans pay their fair share.”
The Plan proposes several practical measures to ensure better fiscal management and a quicker return to balanced budgets:
- Progressive personal income tax system
- Corporate tax adjustment (small business tax elimination)
- Enhanced tax collection
- Reinvest Carbon Capture and Storage funds
- Better health care management
Under the Alberta Liberal Fair Tax Plan, the government will generate an estimated $3.1 billion in revenue and savings. The remaining $3.9 billion revenue shortfall will be offset by a one-time transfer of funds from the Contingency Account.
The Plan will also reverse several of the new and increased fees announced by the Prentice Conservatives, cancel the new Health Care Contribution Levy, and rollback the 7% increase in education property taxes.
Albertans with taxable incomes below $50,000 will see a 0.5% reduction in their income tax rate. The proposed Alberta Liberal personal income tax rates are as follows:
- 9.5% on the first $50,000 of taxable income, +
- 10% on the next $50,000, +
- 10.5% on the next 50,000, +
- 12.5% on the next $100,000, +
- 15% on the amount over $250,000
According to Statistics Canada*, this income tax structure will generate approximately $11.3 billion in total revenue.
Alberta Liberals will also eliminate the taxes paid by small businesses earning under $500,000 and increase government revenue through a 2% adjustment in the amount of tax paid by large corporations.
We will return the responsibility for corporate tax collection to the Canada Revenue Agency in order to address concerns raised by the Auditor General. This will ensure Albertans receive the total amount of revenues owed, and align us with all other Canadian provinces and territories with the exception of Quebec.
“Jim Prentice wants regular Albertans to pay for his government’s mistakes,” says Swann. “But, we believe in sharing the burden fairly and putting money back in the hands of those who need it the most.”
*This analysis is based on Statistics Canada’s Social Policy Simulation Database and Model. The assumptions and calculations underlying the simulation results were specified by the Alberta Liberal Opposition and the responsibility for the use and interpretation of these data is entirely that of the author.’