Bill 1, the Alberta Taxpayer Protection Amendment Act, 2023, fulfils a promise from the government and would ensure that Albertans are guaranteed a say in whether their provincial taxes increase. If passed, the legislation would prevent the government, now and in the future, from increasing personal and corporate income tax rates without first consulting Albertans through a referendum.
“Albertans are not interested in higher taxes and that’s one of the reasons they elected us in the spring: we promised to reduce the taxes they pay and protect them from future tax increases. We are building a strong economy and the stronger that economy is, the higher tax revenue we receive, all while keeping taxes low. This is good for all Albertans and I’m proud to table this legislation.”
Albertans and Alberta businesses already pay the lowest overall taxes in the country; this legislation would protect that. At eight per cent, Alberta’s general corporate income tax rate is 30 per cent lower than the next lowest province. The province’s combined federal-provincial general corporate tax rate is lower than the combined federal-state rate of 44 U.S. jurisdictions.
Alberta’s corporate income tax revenue in 2022-23 was $8.2 billion, the most the province has ever recorded in a single fiscal year. This revenue comes as business incorporations in the province have increased three years in a row, further evidence that Alberta remains a strong place to start and grow a business.
“With the lowest overall taxes in the country, Alberta’s tax advantage is clear, and it’s important we do everything that we can to protect it. By protecting Albertans and Alberta businesses from future tax rate increases, we’re furthering our commitment to Alberta’s low-tax, pro-growth environment.”
“There isn’t anything that business likes more than certainty in an environment they can compete and grow. Enacting Bill 1 will provide that certainty and tax competitiveness going forward for Alberta’s entrepreneurs, who have built one of the most prosperous jurisdictions around the globe.”
If passed, the Alberta Taxpayer Protection Amendment Act, 2023 would also prevent the government from reducing personal income tax bracket thresholds or basic personal, spousal and equivalent-to-spouse credit amounts without a referendum.
“This strengthening of the Alberta Taxpayer Protection Act sets Alberta apart when it comes to respecting taxpayers’ money. This is a landmark win for taxpayers.”
“Alberta small businesses continue to struggle with economic recovery and are faced with new challenges that are putting cost pressures on their business. The Alberta Taxpayer Protection Amendment Act, 2023 will provide Albertans and Alberta small businesses with greater certainty of any future tax increases, which they cannot afford. In CFIB’s post-election survey, 80 per cent of Alberta small businesses say they support the Taxpayer Protection Act.”
Related information
- Protecting Alberta's tax advantage
- Bill 1, Alberta Taxpayer Protection Amendment Act, 2023
- Alberta’s tax advantage