(May 1, 2023) – Danielle Smith today announced a re-elected United Conservative government will create a new 8% tax bracket on income under $60,000. This means every Albertan earning $60,000 or more will save $760 – over $1,500 per family. Albertans earning less than $60,000 will see a 20% reduction to their provincial tax bill under this tax cut.
This tax cut will provide meaningful, timely tax relief to Albertans at a time when they need it most.
“This permanent, billion dollar tax cut will result in real and significant savings that can be put towards housing, life’s other necessities, planning for the future, or whatever else is a priority for Albertans. After all, it’s your money. You earned it, not the government,” said UCP Leader Danielle Smith.
The new tax cut for all Albertans is just the beginning.
A re-elected UCP government will also extend the Fuel Tax Holiday until December 31, 2023, ensuring Albertans save 13 cents per a litre at the pump. This is a savings of around $10, on average, every time you fill up your vehicle, and will assist Albertans to offset the Notley-Trudeau carbon tax that makes everything Albertans need to live more expensive.
United Conservatives will also continue to index all tax brackets to keep up with inflation, a move that will further assist us in better shielding Albertans from the costs of the federal NDP-Liberal coalition’s irresponsible spending, spiralling debt and carbon tax.
A memo from the Parliamentary Budget Officer shows the average Alberta family will pay $710 out of pocket on the carbon tax this year – after their so-called rebates. By 2030, the NDP-Liberal coalition will be picking an additional $2,000 a year out of the pockets of Albertans with their carbon tax.
United Conservatives will not stand for this. A UCP government will work to axe the carbon tax altogether because the best way governments can help address affordability is by ensuring you, the taxpayer, keep more money in your pocket.
This commitment to lowering taxes builds on the No Tax Hike Guarantee, the UCP’s pledge not to increase personal or business taxes. A UCP government would formalize this guarantee by expanding the Taxpayer Protection Act to ensure no future government can increase personal or business taxes without first getting approval from Albertans in a referendum.
In comparison, while the NDP were in office, they hiked taxes and fees 97 times and raised the business tax by 20%, causing businesses and families to leave in droves. The NDP’s high taxes resulted in a record 13 consecutive quarters of people leaving Alberta for other provinces, while businesses closed their doors, industries were forced to lay off workers and investment dried up.
“The choice in this election couldn’t be clearer. It’s a choice between a UCP government that will cut your taxes and make life more affordable and an NDP government that will make you pay more across the board – from taxes, to fuel, to groceries, and beyond,” said Smith. “It’s a choice between moving Alberta forward and building a brighter future or returning to the NDP’s costly and failed policies. We can’t afford to go back.”
Since taking office, the UCP has restored Alberta’s tax advantage, meaning Albertans are paying almost $20 billion less in taxes than the next lowest taxed province.
The province has also seen record investments and greater economic diversification after the UCP cut Notley’s high corporate tax rate of 12% down to 8%. That tax will generate a record $6.4 billion this year in corporate tax revenue that helps pay for high-quality healthcare, schools, and supports to help Albertans manage inflation.
“We need to continue growing the Alberta Advantage so our province remains the best place in the world to raise a family and build a business,” said Smith. “That means having a responsible plan for spending, growth, and stability that keeps taxes low and the cost of living affordable. Together, we will build a stronger, more resilient and more prosperous Alberta today and for our future generations.”
“With inflation hitting Albertan pocketbooks, one of the best ways to provide relief is to reduce personal income taxes rather than handout cheques. Not only will every Albertan family benefit from the tax cut but they can keep more money for themselves as they work or invest more to support their families. Since 2015, Albertans have been hit with various tax increases at the federal and provincial level including income taxes, carbon taxes and user fees. The UCP promise to lower personal income tax on earnings less than $60,000 is a fair and smart way to boost the economy. A promise to index tax brackets for inflation is also the right policy.”
Jack Mintz, President’s Fellow, School of Public Policy, University of Calgary.
