March 16, 2000 Edmonton, Alberta "This bill sets the stage for the most important step in income tax reform that Canada has ever seen." Provincial Treasurer Stockwell Day
"Bill 18 follows through on our promise to unhook from the federal tax system and allows us to address fairness issues that other tax systems have refused to deal with," said Provincial Treasurer Stockwell Day. "With this legislation, we will take 132,000 Albertans off the provincial tax rolls, eliminate bracket creep, and address the difference in taxes paid by single and dual income families." Bill 18 calls for an 11 per cent single rate and personal and spousal exemption levels of $11,620, but Premier Ralph Klein announced plans this week to lower the tax rate and adjust exemption levels to pass recently announced federal tax savings on to Albertans. Details on those changes are expected to follow the release of the province's first quarter results. "This move is consistent with Alberta's tax policy to maintain the most competitive tax regime in Canada," Day said. "We need to pass Bill 18 as it stands now to be ready for next January. The rates and exemption levels are one part of a whole," Day said, adding that those changes will be made by amending the Act. Bill 18 legislates the changes necessary to implement Alberta's new personal income tax system. The system unhooks Alberta from the federal system, allowing the province to determine how Alberta's income taxes are reduced in the future. All taxpayers will pay a single rate and benefit from higher personal and spousal exemptions. Features include:
"Alberta workers will be the first in Canada to be able to choose to take on overtime shiftwork or to increase their skill level and not be punished by being pushed into a higher tax bracket," Day said. Also introduced on March 16 was Bill 19, the Alberta Income Tax Amendment Act, 2000. That bill clears the way for the elimination of the eight per cent surtax retroactive to January 1 of this year. - 30 - For further information, please contact:
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Shannon Larkins Director of Communications Alberta Treasury (780) 427-5364 |
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