‘It’s not credible anymore’: Does Alberta still have a tax advantage?
Facing a revenue drop of more than $11 billion, and a budget deficit of more than $24 billion, an economist with the University of Calgary says Alberta’s so-called tax advantage is no longer credible.
With no provincial sales tax, and high personal income tax exemptions, Alberta has long charged the lowest tax rates on its citizens in the country, relying heavily on non-renewable resource revenues to fill the gap.
“It’s an advantage only if it’s an advantage you can credibly maintain,” Dr. Ron Kneebone said.
“It’s not credible anymore that they can continue to maintain those low tax rates. So firms are now looking at Alberta and saying, ‘Yeah right.”
This year, bitumen royalties are forecast to total $686 million, down from the projected $3.2 billion in February….