SHARE:  
ACC Statement: Corporate Tax Policy Matters for All Albertans
May 18, 2023
Alberta Chambers of Commerce (ACC) President and CEO Shauna Feth issued the following statement in response to the Alberta NDP's recent announcement to increase the general corporate tax rate to 11 per cent from 8 per cent if elected May 29th

“The Alberta Chambers of Commerce is deeply concerned by the Alberta NDP’s platform commitment to increase the general corporate tax rate if elected.

We’ve seen the impacts of this fiscal policy before. It doesn't benefit any Albertan.

In 2015, the corporate tax rate was raised from 10 to 12 per cent on the presumption it would result in increased tax revenues for the province – it did not. Corporate tax revenues shrunk under the higher rate. Business investment and average weekly earnings also declined.

Starting in 2019, the corporate tax rate was reduced incrementally to the current 8 per cent in 2020. It’s made a difference. Corporate tax revenues have been growing since 2019, as have business investment and average weekly earnings. Notably, growth in these key measures began to occur prior to natural gas and oil prices strengthening towards the end of 2021.

Profitability of large businesses is what generates more tax revenues to fund public services, supports higher wages for employees, and higher pension fund returns.

As a community-based organization representing tens of thousands of job creators, our network is highly attuned to the impacts fiscal policy changes have on businesses, employees, and families. In no way would a reduction of the small business tax rate offset the consequences of raising the general corporate tax rate.

We’re talking $150 million savings for small businesses versus $1.6 billion in additional tax burdens to large employers per year based on today's economy, and more importantly, potentially billions in lost global investment for years to come.

Competitive general corporate tax rates attract investment. More investment in the province means more business activity and more job opportunities.

For small businesses, more investment means more contracts from large corporations for goods and services and more patronage from their employees – these are what Alberta’s entrepreneurs depend on to be viable.
 
The facts are, Albertans benefit from helping businesses of all sizes to be successful with competitive tax rates.

Our network's Vote Prosperity platform outlines recommendations from Alberta's business community to support a strong, healthy economy and sustainable public services. We urge the Alberta NDP, and all parties, to refer to it and to promote evidence-based policy that will enable shared prosperity in our province.”

-- 30 --
 
Additional references:
For comment, please contact: 

Jason Leslie
Chief Operating Officer
Alberta Chambers of Commerce
(P) 780-425-4180 Ext.5
The Alberta Chambers of Commerce is a federation of 115 community-based chambers of commerce representing more than 24,000 job creators.


Subscribe to the Alberta Chambers of Commerce Newsletter