News Release

"Premier Klein has promised Albertans that they will enjoy the lowest overall taxes in Canada and the amended Bill 18 builds on that promise."

Provincial Treasurer Steve West

Amended Bill 18 increases the Alberta Advantage over other provinces

EDMONTON, May 23, 2000 - An amendment to Bill 18, the Alberta Personal Income Tax Act, is slated to be tabled in the Legislature today -- a move that will see Alberta’s tax advantage over other provinces get even stronger.

The amendment will boost the annual tax savings to Albertans by $1.3 billion and will free an additional 190,000 lower income Albertans from paying any provincial income taxes. It does this by lowering the single rate tax to 10.5 per cent and raising the basic and spousal exemptions from $7,231 and $6,140 respectively to $12,900.

"This is great news for Albertans at every income level," said Provincial Treasurer Steve West. "By cutting our income taxes we’re making our province far more competitive and adding to the quality of life of Albertans. They’ll have more cash in their pockets to spend, save or invest, as they see fit."

A breakdown of the total taxes and health care premiums paid across Canada shows that Albertans have a huge advantage over people in every other province.  The numbers show that only Ontario has somewhat lower personal income taxes (at some income levels).  But this slight advantage is nullified when sales taxes are factored in.

In addition to the tax savings, Alberta’s amended personal tax system will have a great impact on the economy, creating 30,000 jobs within the next five years and increasing Gross Domestic Product growth by nearly $2 billion, or 1.5 per cent.

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