The new Alberta government says it will introduce a Job Creation Tax Cut to kick-start the provincial economy.
In a news release, the government said Bill 3 will be introduced in the spring session to begin rolling back Alberta’s General Business Tax Rate from 12 per cent to eight per cent. If the bill is passed, the tax rate will be lowered to 11 per cent on July 1, and will continue to drop one per cent every Jan. 1 until 2022, it said.
“This tax reduction will give Alberta the lowest tax on employers in the country, and is a key part of our plan to get our province back to work. We’ve already heard from major Canadian and global corporations that they’re ready to invest in Alberta again – and we’re proud to be taking bold action that will create growth, jobs and prosperity for Albertans,” said Premier Jason Kenney in a statement.
After the first reduction this summer, Alberta will have the lowest tax rate on employers in the country, said the government.
“By 2022, the next lowest provincial business tax rate in Canada will be nearly 45 per cent higher than in Alberta. This is expected to create 55,000 jobs, boost provincial GDP by nearly $13 billion and help attract new business investment. It will also reverse the flow of investment and jobs to the U.S. since the huge tax cuts there in 2017. Alberta business taxes are currently higher than the vast majority of U.S. states, but by 2022 the province will have lower rates than 44 states,” it said.
“Alberta’s businesses are struggling and the unemployment rate is far too high. We intend to change that. We value Alberta’s job creators, and this tax reduction will help stimulate investment and economic activity in the province. We will get Alberta working again by making it easier to do business in this province,” added Travis Toews, president of Treasury Board and minister of Finance.
– Mario Toneguzzi