The Alberta government has taken much flak — deservedly so — for its failure to deliver on a promised income tax cut. The premier has insisted that the promise will still be fulfilled at some point in their current mandate, but it was certainly advertised as a tax cut meant to help people right now.

Thanks to a controversial tax change by the federal Liberals, the province suddenly has some room to move on this issue. And, given the objections they’ve raised to Ottawa’s plans, there is a strong case for action right now.

Next Tuesday, the capital gains tax inclusion rate officially rises from 50 per cent to two-thirds. That means more income derived from capital gains will be exposed to income tax, and that means more revenue for Ottawa to help pay for some of their new spending.

But this will also mean more revenue for provinces, too — just under $12 billion over five years, by Ottawa’s estimates. For Alberta, that’s potentially between $ billion and $2 billion.

Much has been said about the potential impact of this change, but........

© Calgary Herald