When the new federal top tax rate takes effect, Alberta will have one of the highest top rates in North America.
In a recent interview, Premier Rachel Notley seemed to hint that the Government of Alberta could slow its plan to increase the minimum wage to $15 if the economy remains weak.
For many years, Alberta has maintained a strong investment climate vis-à-vis other provinces and other energy-producing jurisdictions.
Yesterday, the Alberta government unveiled its new climate change strategy, calling for a carbon tax, which represents a new tax burden on Alberta businesses and families.
October 1 marks an important day for Alberta. It’s when the province officially moves away from a single 10 per cent tax rate on personal income to a system with five separate brackets.
With tumbling oil prices and resource revenues, Premier Jim Prentice had a choice when he delivered Alberta’s 2015 budget. He could emulate former premier Don Getty and raise taxes or follow the Ralph Klein playbook and reduce spending.
Alberta’s decades long economic success is a result of resource wealth, relatively sound public policies and a growing skilled labour force. Compared to other energy-producing jurisdictions such as Alaska, North Dakota, Saskatchewan, Texas, and Wyoming, Alberta does well economically but there are areas of concern, which if ignored, may affect the province’s long-term prosperity.
The 2007 Alberta budget signals the beginning of the end of the Alberta Advantage -- an advantage based largely on the combination of Canadas smallest government and the countrys lowest tax rates.
A significant part of the explanation for the current boom enjoyed by Albertans are the policies embedded in the Alberta Advantage and implemented by former Premier Ralph Klein.
Much has been made of the Alberta Advantage, the simple yet wonderfully effective combination of reduced government spending, lower taxes, streamlined regulation, and debt reduction, which propelled the Albertan economy forward beginning in the mid-1990s and lasting up until today. Unfortunately for Albertans, and other Canadians that see Alberta as an economic beacon, the province is the midst of losing that advantage and returning to the dark days of unsustainable spending increases, tax increases and deficits.