Reforming Capital Gains Taxes in Alberta
— Published on December 18, 2018
- Capital gains taxes impose comparatively large costs on the economy by discouraging needed activities such as entrepreneurship, investment, and savings.
- A number of industrialized countries such as Switzerland, New Zealand, the Netherlands, and Belgium impose no capital gains taxes.
- While the capital gains tax is a federal tax, there is a method by which to exempt capital gains income from provincial income taxes.
- Critically, nine US states exempt capital gains from state-level income taxes: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. It’s worthwhile to note that several of these states—Alaska, South Dakota, Texas, and Wyoming—are major energy-producing states.
- Eliminating capital gains taxes from provincial income tax in Alberta would send a powerful signal to would-be entrepreneurs, investors, and business owners that the province is regaining its former competitiveness.
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