Find out what’s in it for your business!
On February 27th, the Alberta government released their second budget since being elected last spring. The budget was largely a continuation of the government’s first budget in October, and reaffirmed previous commitments made, including:
- Reducing the corporate income tax rate to 8% by 2023;
- Measuring and reducing red tape, including focusing on reducing internal trade barriers, and ensuring that regulatory barriers are minimized for job creators; and
- Reducing operating spending by nearly 3%.
- Focus on encouraging more investment in the province
- A new Trade Promotion Office (announced in the Throne Speech)
- A new Investment and Growth Strategy that includes $75 million over three years to attract investment to other sectors
- Obtaining a Fair Deal for the province
- The Alberta government is pushing for the federal government to lift the per capita cap on the Fiscal Stabilization Program, resulting in a $2.4 billion rebate
- Act on the recommendations from the Fair Deal Panel (report due March 31, 2020)
- Reduce internal trade barriers
- Encourage more provinces to join the New West Partnership and develop energy and resource corridors across the country
Other budget highlights
- Implementation of 20% tax on the retail price of vaping products, including all liquids and devices, expected to raise $4 million in 2020.
- A 4% tourism tax on short-term rentals such as Air BnB and VRBO
- Educational property tax rates are going to increase by 3.1 per cent for 2020-21 to adjust for population growth and inflation
- The residential/farmland rate will increase from $2.56 to $2.64 per $1,000 of equalized assessment
- The non residential rate will increase from $3.76 to $3.88.
Overall this government’s first two budgets pass the CFIB’s fiscal fitness test for sustainable spending and is supported by what our members have told us:
- 83% of Alberta’s small businesses agree that tax relief, such as reducing the corporate income tax rate, would have a positive impact on Alberta’s economy over time.
- 95% of small business owners in Alberta support the government reducing operational spending by 2.8% over the next four years.
- 93% of small businesses believe Canada is facing serious challenges with respect to investor confidence
Find out what we thought on the unveiling of Alberta’s budget here!
The Alberta team and CFIB’s President and CEO, Dan Kelly, met with Alberta’s Finance Minister, Travis Toews, in early March to discuss our reaction the 2020 budget and our recommendations to the Fair Deal panel.
We will continue to bring forward the concerns of you and your business as we progress through the government’s term. As always, please do not hesitate to reach out to our team at 1-888-234-2232 or email us at [email protected].
Not a member of CFIB yet? JOIN CFIB today for more help and information.