Taxpayers Federation applauds UCP commitment to reduce business taxes and grow the economy
CALGARY, AB: The Canadian Taxpayers Federation applauds the United Conservative Party’s commitment to reduce the business tax rate to 8 per cent and encourages all parties to commit to tax relief if elected.
“When entrepreneurs have more money, they reinvest and hire more people and that’s why cutting the business tax is a great way to get Albertans back to work,” said Franco Terrazzano, Alberta Director for the CTF. “The UCP’s commitment to reducing business taxes is an important step to putting Alberta’s economy back on the right track and every party needs to include this commitment in their election platforms.”
UCP leader Jason Kenney today announced he would cut the business tax rate from 12 per cent to 8 per cent if elected.
In 2015, the Alberta government increased the business tax from 10 per cent to 12 per cent. The government has also imposed a carbon tax. Meanwhile, other jurisdictions, including the United States, have reduced their business tax rates.
The Canadian Taxpayers Federation has consistently called on the Alberta government to reduce business taxes and honour its 2001 budget commitment to reduce business taxes to 8 per cent. In fact, the 2001 budget included an important warning and stated: “If we don’t [lower corporate income taxes], we risk losing increasingly mobile capital and highly skilled people.”
Increasing the tax burdens on Alberta businesses has not led to higher government revenues. In 2014, corporate income tax revenue totaled $5.8 billion. Even with a higher tax rate, revenue collected from the business tax has fallen to $3.4 billion in 2017 and is forecasted to be $4.1 billion in 2018.
“The current government hammered businesses with more taxes at a time when Albertans needed relief the most and as other jurisdictions have been making their business environments more competitive,” said Terrazzano. “Not only did the Alberta government reduce competitiveness, it also failed to increase business tax revenues.
“Making Alberta businesses more competitive by lowering taxes makes everyone a winner.”