Alberta budget includes largest spate of tax hikes in a generation: ‘It’s going to feel like we’re in a recession’ | National Post
EDMONTON — Albertans are about to face the largest spate of tax hikes in a generation.
Higher income tax, a health levy, and increased taxes on alcohol, tobacco and gasoline — the latter items set to become more expensive at 12:01 Friday morning — have all been written into Alberta’s fiscal plan this year as the province struggles to whittle away a $5 billion operating deficit and ballooning multi-billion dollar debt.
Facing an estimated $7 billion shortfall in revenues between this fiscal year and last, the province is abandoning the 10 per cent flat tax implemented by late premier Ralph Klein in 2001 and long touted as the centrepiece of the “Alberta Advantage.”
“It’s going to feel like we’re in a recession, but we’re not in a recession,” said finance minister Robin Campbell as his government tabled its budget on Thursday.
“This has been one of the hardest budgets to develop in many years. It required tough decisions, and was not a reality we were expecting as recently as last fall.”
Beginning in January, income taxes will rise by .5 per cent per year for the next three years for individuals earning more than $100,000. For those earning more than $250,000, that amount will increase by 1 per cent, .5 and then .5 per cent, respectively. For both income brackets, the final rate will then settle at 11.5 per cent by 2019.
But the revenue increases will affect more than just the province’s wealthiest 330,000 income earners; user fees, fines and tax hikes will hit across the board. All of these measures are expected to bring in $1.5 billion more in revenue this year, and $2.7 billion by 2019-20.
Wine, beer, cigarettes, gasoline, court fees, marriage licenses, death certificates, license registrations, even traffic tickets — all will become costlier in the coming year.
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On Friday morning, the cost of a bottle of wine will increase by about $.16. A 12-pack of beer will be $.90 more expensive; a pack of cigarettes, $.50. And the gas tax will rise by $.04 to $.13 per litre.
Additionally, Premier Jim Prentice’s government is re-introducing healthcare levies, although the money raised will be funneled back into general revenues.
Albertans earning more than $50,000 will pay between $200 and $1,000 per year, depending on income.
EDMONTON — Albertans are about to face the largest spate of tax hikes in a generation.
Higher income tax, a health levy, and increased taxes on alcohol, tobacco and gasoline — the latter items set to become more expensive at 12:01 Friday morning — have all been written into Alberta’s fiscal plan this year as the province struggles to whittle away a $5 billion operating deficit and ballooning multi-billion dollar debt.
Facing an estimated $7 billion shortfall in revenues between this fiscal year and last, the province is abandoning the 10 per cent flat tax implemented by late premier Ralph Klein in 2001 and long touted as the centrepiece of the “Alberta Advantage.”
“It’s going to feel like we’re in a recession, but we’re not in a recession,” said finance minister Robin Campbell as his government tabled its budget on Thursday.
“This has been one of the hardest budgets to develop in many years. It required tough decisions, and was not a reality we were expecting as recently as last fall.”
Beginning in January, income taxes will rise by .5 per cent per year for the next three years for individuals earning more than $100,000. For those earning more than $250,000, that amount will increase by 1 per cent, .5 and then .5 per cent, respectively. For both income brackets, the final rate will then settle at 11.5 per cent by 2019.
But the revenue increases will affect more than just the province’s wealthiest 330,000 income earners; user fees, fines and tax hikes will hit across the board. All of these measures are expected to bring in $1.5 billion more in revenue this year, and $2.7 billion by 2019-20.
Wine, beer, cigarettes, gasoline, court fees, marriage licenses, death certificates, license registrations, even traffic tickets — all will become costlier in the coming year.
Related
On Friday morning, the cost of a bottle of wine will increase by about $.16. A 12-pack of beer will be $.90 more expensive; a pack of cigarettes, $.50. And the gas tax will rise by $.04 to $.13 per litre.
Additionally, Premier Jim Prentice’s government is re-introducing healthcare levies, although the money raised will be funneled back into general revenues.
Albertans earning more than $50,000 will pay between $200 and $1,000 per year, depending on income.