The Alberta advantage is gone thanks to NDP government tax hikes: study
Fraser Institute reports corporate rates now lower in BC, Ontario and Quebec.
CALGARY — Alberta has lost its “advantage” thanks to corporate and personal income tax hikes brought in by the NDP government in 2015, says a Fraser Institute study.
The public policy think-tank noted Alberta’s tax rate, once among the lowest in North America, attracted investment and people to the province.
Before the current government’s tax increases, Alberta had the lowest corporate tax rate in Canada at 10%. In 2015, the new NDP government raised it to 12%, higher than BC’s 11%, Ontario’s 11.5% and Quebec’s 11.9%.
Alberta also had the lowest combined top personal income tax rate in Canada – 10% on all incomes.
The Fraser Institute notes this was undone when the government introduced five tax rates and increased the top rate by 50%. This change was also implemented before the federal government introduced its even higher personal income taxes.
As a result, Alberta’s top combined marginal personal income tax rate – which was the lowest in North America in 2014 – is now the 16th highest among all provinces and US states.
Between 2001 and 2014 when Alberta’s personal tax rates were among the lowest in North America, the study says the province had the second highest rate of economic growth, averaging 3.3% annually behind only North Dakota.
Click here to download the report.