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Alberta can't afford to not cut corporate taxes

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Alberta’s Opposition leader recently said he plans to reduce Alberta’s corporate income tax from 12 per cent to eight per cent.

That would be welcome news.

In 2014, Alberta had both the lowest corporate income tax (CIT) and lowest top personal income tax (PIT) rate of any province or U.S. state. That is until the Notley government raised the PIT on high earners — giving Alberta one of the highest combined marginal rates in Canada and the U.S. — and the CIT from 10 per cent to 12 per cent, while the Donald Trump administration cut the U.S. federal CIT by 14 percentage points, bumping Alberta into a nine-way tie for the 18th lowest rate.

In other words, the province’s tax competitiveness has taken a beating in recent years. Again, pro-growth tax reform would be a welcome relief.

Cutting Alberta’s corporate rate to eight per cent would substantially improve Alberta’s competitiveness, making the province........

© Calgary Herald