Business tax relief is good, but soaring spending is concerning: Taxpayers Federation

Author: Franco Terrazzano 29/06/2020

CALGARY, ABThe Canadian Taxpayers Federation is pleased to see the Alberta government accelerate the business tax cut, but is concerned that higher spending will mean a larger provincial debt tab for Albertans.

“Premier Jason Kenney’s economic recovery plan delivers tax relief that will help entrepreneurs get Alberta back on track, but there’s also a lot of spending so we’re concerned about the deficit,” said Franco Terrazzano, the CTF’s Alberta Director. “Allowing Alberta’s job creators to keep more money to invest in their businesses and workers is the right way to fire up our economy and get more Albertans back to work.”

The CTF has consistently called on the Alberta government to reduce business taxes and honour its 2001 budget commitment to reduce business taxes to eight per cent. The CTF applauds today’s government announcement to accelerate the job creation tax cut to eight per cent on July 1, 2020.

The CTF is concerned that the additional infrastructure and corporate welfare spending through the Alberta Enterprise Corporation, the Innovation Employment Grant and other subsidies will accelerate the government’s provincial debt tab and could mean higher taxes for Albertans in the future.

“Risking tax dollars so politicians and bureaucrats can play investment banker is the wrong way to grow the economy,” said Terrazzano. “Instead of more corporate welfare, Kenney should lower income taxes so families and workers have more money to spend in local businesses.”