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This release was issued under a previous government.
Bill 2, An Act to Restore Fairness to Public Revenues, will increase the corporate income tax rate for profitable corporations by two percentage points and introduce a more progressive personal income tax system.
“We are asking high-income earners and profitable corporations to contribute fairly to rebuilding our province. This measure will create a fairer tax system and help bring fiscal stability to our province so we are not so prone to boom-bust cycles.”
The Bill, if passed, will increase corporate taxes from 10 per cent to 12 per cent effective July 1, 2015—a tax rate that is still competitive when compared to other provinces. Alberta’s small business tax rate will remain the same at three per cent.
“We will work closely with job creators of every size to promote jobs and economic prosperity. Corporations that can afford to contribute a little more, should contribute a little more. Even with these new personal and corporate tax rates, Alberta will remain a competitive place to do business, with no sales tax, no health care premiums, no payroll tax and the lowest fuel tax among provinces.”
Bill 2 will also create a progressive personal income tax rate structure for higher income earners.
The new personal income tax rates will be:
- Income up to $125,000: 10 per cent
- $125,000 - $150,000: 12 per cent
- $150,000 - $200,000: 13 per cent
- $200,000 - $300,000: 14 per cent
- $300,000 and higher: 15 per cent
Changes will begin to be implemented on October 1, 2015.
In 2016-17, the proposed changes to Alberta’s personal income tax system will generate an estimated $800 million to $1 billion in additional revenue, while the corporate tax increase will generate an estimated $350 million to $550 million more. This additional revenue will help ensure Albertans continue receiving the quality services and infrastructure they need.
The government also announced that it will not proceed with a number of fees imposed on Albertans by the previous government. The government will eliminate the health levy and scrap proposed fee increases on:
- vehicle licenses and registration;
- land title searches and mortgages; and
- marriage licenses, birth certificates and death certificates.
“We are putting forward a plan that will restore fairness to Alberta’s tax system, give families the break they deserve and help ensure Albertans continue to have access to the vital public services they need like health care, education and social services.”