May 28, 2019

Taxpayers win with business tax relief that will get Albertans back to work

EDMONTON, AB: The Canadian Taxpayers Federation is celebrating a huge victory as the Alberta government starts lowering business taxes to get Albertans back to work. Finance Minister Travis Toews announced the corporate income tax rate will fall from 12 per cent to 8 per cent.

“When Alberta businesses have more money, they create more jobs for more of their neighbours,” said Todd MacKay, the CTF’s Vice-President of Communications. “A lot of Albertans have been feeling the stress of unemployment and low wages for too long and lower business taxes will create hope that better times are coming.”

The Alberta government is planning to reduce the corporate income tax from 12 per cent to 8 per cent, starting with a one percentage point reduction this year and another percentage point reduction in each of the following three years.

In 2015, the Alberta government increased the business tax from 10 per cent to 12 per cent, but it did not lead 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 is now forecast to be $4.1 billion.

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.

“Reductions to business taxes are a huge victory for taxpayers,” said Franco Terrazzano, the CTF’s Alberta Director. “Albertans are struggling through a tough economy and heavy tax burdens hold them back and make life harder. By lowering business taxes, this government is giving Albertans a chance to get back on their feet and get ahead.”

- 30 -

For more information, please contact:

Franco Terrazzano – CTF Alberta Director – 403-918-3532 – [email protected]