New Study Confirms Alberta's Financial Trouble

Jordan Allatt
Analytical Reporter

Calgarians, and Albertans in general, may have to start accepting the loss of their tax advantage. After two-decades of being under-taxed in comparison to other provinces, Alberta may have to start implementing a provincial tax to get back on track, according to a new study at the University of Calgary. The study suggests that the provincial government should adopt a “growth oriented tax structure” that would reduce personal and corporate income tax. The province is forecasting a record (prepare yourself, please) 6.9 billion dollar deficit this year. The primary reason for this dramatic downturn seems to be the drop in oil and gas prices worldwide; thereby leading to a drop in government royalties. According to the study, the province should cut income taxes by increasing surcharges on private and public consumption. The study offered the use of water levies and use-related charges for non-critical health services as examples. The study does specify that low-income Albertans who would have a disproportionate burden, and should be given tax credits. Check out the Calgary Herald article via the link below. Until next time, stay classy Calgary.

http://www.calgaryherald.com/health/Alberta+losing+advantage+need+sales+study/2100755/story.html