EDMONTON - The Canadian Taxpayers Federation (CTF) today requested that the Alberta government cut business taxes by $1.5 billion through the creation of a simpler, lower, and flatter business tax system. The Federation's proposals have been submitted to the Alberta Business Tax Review Committee which is currently examining the province's tax regime.

CTF Alberta Director Mitchel Gray said that Alberta's complicated business tax system consists of a patchwork of various taxes that sacrifice economic efficiency for political expediency. "Business taxes in Alberta have been developed around political agendas," said Gray. "It's time we focussed on creating the most competitive system possible by simplifying and lowering the business taxes Albertans pay."

The CTF is recommending that:

The province should reduce both the general corporate income tax rate and the manufacturing and processing rate to 8 percent;

Alberta should reduce the small business tax rate to 4% and double the threshold of the small business corporate income tax rate from $200,000 to $400,000;

The province should eliminate the Insurance Corporations Tax, the Financial Institutions Capital Tax, and the Hotel Room Tax;

Alberta should reduce its gasoline tax rate by 5 cents per litre and lobby the federal government to match the province's cut;

The non-residential education property tax rate should be lowered to $6.77 per $1,000 of equalized assessment, thus creating one single education property tax rate.

Gray said that the Federation's proposed $1.5 billion business tax cut should be phased in over five years to avoid a decline in tax revenues. "Phasing in these cuts over a period of time will result in an increase in overall revenues," said Gray. "That's been the experience all over the world, from Ireland to Ontario."

Gray emphasized that business tax cuts are not just good for businesses, but for individual Albertans as well. "The cuts we're recommending will mean more jobs -- and better paying jobs -- for Albertans, lower prices, and a higher standard of living. Business tax cuts are good for all of us," concluded Gray.