EDMONTON: The Canadian Taxpayers Federation (CTF) today praised the Alberta government for adopting the business tax cut recommendations proposed by the Federation earlier this year.

The province will be: reducing the corporate income tax rate to 8% from 15.5%; lowering the small business rate to 3% from 6%; doubling the small business deduction to $400,000 from $200,000; dropping the capital gains inclusion rate to 50% from 66%; and, cutting property taxes.

"These cuts will result in substantial savings for all Albertans," said CTF Alberta Director Mitchel Gray. "Corporate Income tax cuts will find their way back into consumers' pockets through lower prices, seniors and retirees will have higher after-tax incomes thanks to the capital gain changes, and property owners will get a break on their school taxes - everybody wins!"

The Federation suggested that the cuts will stimulate growth and produce greater tax revenues. Ireland, for example, has seen its corporate tax rate go from 36% to 24% over the last four years with corporate income tax revenues increasing from $2.9 billion to $5.5. billion.

"We expect that these rate reductions will translate into more money for spending on priority items like debt retirement, health and education," said Gray.

Gray pointed out that the business tax cuts had to be made. "Alberta really had no choice but to lower rates to stay competitive with Ontario - where an 8% corporate rate is coming into effect - not to mention the rest of the world."

"Dr. West and the Alberta government should be congratulated for stepping up to the plate and reaffirming the Alberta advantage."