Newspaper article The Canadian Press

New Era: Alberta NDP Spends Extra $624M, Introduces Bill to Hike Tax on Wealthy

Newspaper article The Canadian Press

New Era: Alberta NDP Spends Extra $624M, Introduces Bill to Hike Tax on Wealthy

Article excerpt

Alberta spends extra $624M, taxes wealthy

--

EDMONTON - The NDP government put its imprint on Alberta's wallet Thursday, spending $624 million on schools, hospitals, and social care and introducing a bill to increase taxes on large businesses and the wealthy.

The bill, tabled by Finance Minister Joe Ceci, proposes increasing the tax rate on large corporations to 12 per cent from 10 per cent effective July 1.

It also moves to hike income taxes on anyone making more than $125,000 a year effective Oct. 1.

The tax changes are forecast to bring in up to $800 million in this fiscal year and up to $1.5 billion in the next.

Ceci said the changes will not have an impact on 93 per cent of Alberta's tax filers.

He said while it's not ideal to introduce tax changes mid-year, it was important to move immediately to make Alberta's fiscal foundation more secure and fair.

"Even with this new rate, Alberta will maintain an overall competitive advantage when compared to other provinces, with no sales tax, no health-care premiums and the lowest fuel tax in Canada," said Ceci.

Currently, all Albertans pay a 10 per cent flat tax on income.

The bill directs that anyone with taxable income over $125,000 but under $150,000 pay 12 per cent.

Those making over $150,000 but less than $200,000 would pay 13 per cent, those making over $200,000 but less than $300,000 would pay 14 per cent and those earning over $300,000 would pay 15 per cent.

There are no plans to change the three per cent tax on small businesses.

Earlier Thursday, Health Minister Sarah Hoffman said some of the tax money would be used to pay for the $624 million in new initiatives.

"We're working towards ensuring there's additional revenue, but Albertans made it very clear during the election that they did not want to see cuts to health care and education and human services," she said.

The lion's share of the money, $500 million, is to go to health to reverse $1 billion in planned cuts under the former Progressive Conservative government. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.