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ALBERTA
ADVANTAGE
Alberta's
vision is "A vibrant and prosperous province where Albertans enjoy
a superior quality of life and are confident about the future for themselves
and their children."
The Government
of Alberta's 20-Year Strategic Plan has outlined four areas of opportunity
that will be important to the achievement of this long-term vision: unleashing
innovation; leading in learning; competing in a global marketplace; and
making Alberta the best place to live, work, and visit.
The Alberta
Advantage illustrates, using widely accepted performance indicators, that
Alberta is leading the way in these areas and is progressing toward its
vision by capitalizing on the exciting opportunities that are available…
- a strong and vibrant
economy
- a young, skilled
and productive workforce
- affordable living
costs
- a strong commitment
to innovation and knowledge-based progress
- a highly entrepreneurial
and competitive business community
- a business-friendly
province committed to responsible regulation
- the lowest overall
tax load of any province in Canada, including no retail sales tax
- a modern and efficient
infrastructure
- an abundance of
natural resources
- a beautiful natural
environment
- a fiscally responsible
provincial government
The Alberta
Advantage is organized around the following categories: the economy, people,
taxes, operating costs, quality of life and sound financial management.
It shows that Alberta is "the place to be."
THE
ECONOMY - STRONG AND DIVERSIFIED
Over
the past decade, Alberta's economic performance has been exceptional,
leading the nation in nearly all economic indicators. This province's
prosperity enables its residents and businesses to be confident about
the future. Alberta is creating an environment and infrastructure that
enables knowledge and technology to invigorate our traditional economic
strengths and create new opportunities.
REAL
GDP per capita
- Alberta has the highest real
gross domestic product per capita among the provinces.
- Since 1999, Alberta's real
gross domestic product per capita has averaged 9% higher than second
place Ontario.
REAL
economic growth
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv2.gif)
- Alberta's economic
growth rate was the second highest in Canada over the past five years.
- In 2003, Alberta's
real output grew by an estimated 3.1%.
INVESTMENT
PER CAPITA
- Alberta continues to be far
ahead, as it has been for decades, in total private sector investment
per person.
- Over the past five years,
Alberta's investment per capita has been more than double that of the
next highest province, Newfoundland and Labrador.
UNEMPLOYMENT
RATE
- Over the past five years,
Alberta's average unemployment rate of 5.1% was tied with Manitoba as
being lowest among the provinces, well below the national average of
7.4%.
- In December 2003, Alberta's
unemployment rate of 4.8% was the lowest in Canada.
PERSONAL
INCOME
- Over the five years ending
in 2002 (the most recent data available), Albertans enjoyed the highest
personal income per capita.
- In 2002, Alberta had the
highest personal income per capita among provinces, $1,997 above second
place Ontario.
PERSONAL
DISPOSABLE INCOME
- Over the five years ending
in 2002 (the most recent data available), Alberta was ahead of all other
provinces in personal disposable income per capita. For 2002, Alberta
was $1,847 above second place Ontario.
- With no general retail sales
tax in Alberta, the disposable income advantage translates into even
greater purchasing power.
RETAIL
SALES PER CAPITA
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv7.gif)
BUSINESS
gROWTH
- Over the last five years,
Alberta's average business growth has been the fastest of any province
in Canada.
- In 2003, the number of businesses
in Alberta increased by 1.5%, the strongest growth among provinces.
CORPORATE
HEADQUARTERS
- Alberta is home to 530 head
offices, the third highest number in Canada, and the highest number
per capita of any province.
- In Western Canada, Calgary
leads in head office employment, with more than 16,000 employees in
2002.
THE
PEOPLE - YOUNG, HIGHLY TRAINED AND PRODUCTIVE
In today's knowledge-based economy,
the people of Alberta are our province's most important resource. Albertans
are highly skilled and productive, and are among the most educated in
the world. They are the foundation of our thriving and vibrant economy.
POPULATION
- Over the past five years,
Alberta's population has grown the fastest among the provinces.
- In 2003, Alberta's population
growth of 1.3% also led the provinces.
NET
INTERPROVINCIAL MIGRATION
- Alberta has the highest number
of interprovincial migrants in Canada.
- From July 2002 to June 2003,
a net of 12,081 migrants came to Alberta from other provinces. The only
other provinces to experience positive net interprovincial migration
during this time were Nova Scotia and Prince Edward Island, at 777 and
571, respectively.
PERFORMANCE
OF STUDENTS AGED 15
- In 2000, the performance
of students aged 15 in Alberta was significantly above the Canadian,
United States and international averages in reading, mathematics and
science.
- Out of 32 countries and
the provinces of Canada, Alberta scored the highest in reading.
POPULATION
AGED 25-54 WITH POST-SECONDARY EDUCATION
- Alberta has the best educated
workforce in Canada.
- Approximately 64% of Albertans
aged 25 to 64 have post-secondary education.
SHARE
OF POPULATION UNDER 40
- Alberta has the youngest
population among the provinces.
- About 59% of Albertans are
under the age of 40.
PARTICIPATION
RATE
EMPLOYMENT
TO POPULATION RATIO
-
Compared to other provinces,
more Albertans are working relative to the size of our working age
population, 4.1 percentage points above the second place province,
Manitoba.
LABOUR
PRODUCTIVITY
LABOUR
RECORD
internet
use
- Albertans are the most "connected"
when it comes to Internet technology, which improves access to information,
education, health and commerce services.
- Canada
is the most connected country in the world.
THE
LOWEST TAX LOAD - LEAVING MORE DOLLARS IN THE POCKETS OF ALBERTANS
Alberta is open for business
with the lowest overall corporate and personal taxes in Canada. We are
the only province with a single-rate personal income tax system and the
only province that does not have a general retail sales tax. Alberta truly
has a globally competitive tax environment.
TOTAL
PROVINCIAL and MUNICIPAL TAX LOAD
RETAIL
SALES TAX RATES
COMBINED
TOP MARGINAL PERSONAL INCOME TAX RATES
- Alberta has the lowest top
marginal personal income tax rate among the provinces at 39% –
29% federal and 10% provincial.
- In Alberta, top income earners
keep 61% of their last dollar earned.
FAMILY
EARNING $30,000
- This graph, and following
two, compare provincial income, sales, payroll, fuel and tobacco taxes,
and health care insurance premiums payable by a family.
- In Alberta, a typical one-income
family earning $30,000 pays only $431, approximately 85% less than the
average of the other provinces.
FAMILY
EARNING $60,000
-
In Alberta, a typical two-income
family earning $60,000 pays $3,968, approximately 33% less in combined
taxes and health care insurance premiums than the average of the other
provinces.
FAMILY
EARNING $100,000
-
In Alberta, a typical two-income
family earning $100,000 pays $7,261, approximately 35% less in combined
taxes and health care insurance premiums than the average of the other
provinces.
PROVINCIAL
general CORPORATE INCOME TAX RATES
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv26.gif)
- As of April 1, 2004, Alberta
will have the second lowest general corporate income tax rate in Canada
at 11.5%. Alberta's general corporate tax rate will be reduced to 8%,
as affordable.
- Alberta businesses also
benefit because Alberta has no general sales tax, no capital tax and
no payroll tax.
PROVINCIAL
SMALL BUSINESS CORPORATE INCOME TAX RATES
- As of April 1, 2004, Alberta's small business corporate income tax
rate of 3% is tied for the lowest in Canada.
gasoline
tax rates
-
At 9.0 cents per litre,
Alberta has the lowest gasoline tax rate among the provinces, 2.5
cents per litre below Manitoba, the second lowest province.
ALBERTA'S
TAX ADVANTAGE
- This graph shows the total additional provincial taxes that individuals
and businesses would pay if Alberta had the same tax systems as the
other provinces. The comparison also includes government revenues from
health care insurance premiums and liquor markups.
- Albertans would pay over $6.2 billion more if we had to pay British
Columbia's taxes, and almost $10.8 billion more if we had to pay Quebec's
taxes.
LOW
OPERATING COSTS - FOR BUSINESSES AND HOUSEHOLDS
When it comes to cost of living
and doing business, the province of Alberta is an attractive place to
be. Alberta's favourable business environment encourages investment and
allows companies and industries to compete and succeed. Our low taxes,
skilled workforce and well-established infrastructure provide additional
outstanding advantages.
business
costs index
- Based on KPMG's
study of business costs in North America, Europe and Asia-Pacific, Edmonton
has the second lowest total costs among the major Canadian cities and
all American cities.
- An Edmonton business
would have an overall 11% cost advantage over the average U.S. city.
INITIAL
INVESTMENT COSTS
annual
labour costs
- Labour costs, a major component of location-sensitive business costs
which can range from 56% to 85% of total operations, are lowest in Edmonton
among major cities.
WORKERS'
COMPENSATION PREMIUMS
-
Alberta's average WCB premium
rate is the third lowest among the provinces. Alberta, British Columbia,
Saskatchewan, Manitoba and New Brunswick have no unfunded WCB liabilities.
investment
climate
- Based on the Fraser Institute's
2002 Survey of Senior Investment Managers, Alberta emerged as a close
second for best investment climate in Canada.
- With respect to government
policies, Alberta and Ontario led the nation with nearly 87% of respondents
indicating that the provinces foster globally-competitive companies
office
occupancy costS
- Edmonton has the
lowest overall office occupancy costs among major Canadian cities.
- In Calgary, costs
are lower than those in British Columbia and Ontario.
GASOLINE
PRICES
natural
gas rates
- Albertans enjoyed the lowest residential
natural gas rates in Canada during the first nine months of 2003 (the
most recent data available).
- Alberta's
Natural Gas Rebate Program is assisting Albertans with natural gas costs
this winter.
DAILY
LIVING PRICE INDEX
- Residents in Edmonton pay less for daily living than major Canadian
cities such as Toronto and Vancouver.
- A basket of daily living non-durable goods and services (food, utilities,
household operations, transportation, health/personal care, recreation
and tobacco/alcohol products) that costs $100 in Edmonton would be approximately
$111 in St. John's.
HOUSING
AFFORDABILITY
- With Alberta's home ownership costs taking up only 27.5% of a typical
pre-tax household income, housing affordability is second only to the
Atlantic provinces.
- More balanced housing market conditions, record-low borrowing rates,
and good household income gains contributed to Alberta's solid housing
affordability in 2003.
NET
HOME PROPERTY TAXES
- Among major cities, Calgary and Edmonton rank first and third, respectively,
when it comes to lowest property taxes for a typical single family house.
QUALITY
OF LIFE - OUTSTANDING
Each year, thousands of people
from the rest of Canada are drawn to this province, well known for its
exceptional standard of living. Alberta is a prosperous region, where
residents share a rich natural environment, and enjoy outstanding opportunities
in recreation, arts, and culture.
LIFE
EXPECTANCY
- In 2001, Alberta had the third highest life expectancy at birth among
provinces.
QUALITY
OF LIfe INDEX
- Based on an analysis of "Quality of Life", Calgary placed
24 out of 215 major cities in the world, tying the highest ranked U.S.
cities, Honolulu and San Francisco.
- Calgary ranks number one in the world for the health and sanitation
component of the study.
EXPENDITURE
ON RECREATIONAL ACTIVITIES
-
With the highest average
household income among the provinces, Albertans are able to spend
more on sports, performing arts, and other recreational and entertainment
activities.
SUPPORT
FOR PERFORMING ARTS
provincial
health expenditure
provincial
and local education expenditure
GOVERNMENT
OF ALBERTA - ACCOUNTABLE AND FISCALLY RESPONSIBLE
The Alberta government is committed
to responding to the needs of its citizens, while ensuring a balanced
budget. As the only province with more financial assets than liabilities,
Alberta continues to attract international attention as the most fiscally
responsible government in Canada.
GOVERNMENT
surpluseS (DEficits)
- The Alberta government
is committed to living within its means.
- Alberta has the
highest surplus as a percentage of GDP in 2003-04.
GOVERNMENT
net financial assets (debt)
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv48.gif)
- Alberta is the only provincial government in Canada with total financial
assets that exceed total liabilities.
- At March 31, 2004, Alberta's financial assets are forecast to be
$28.3 billion. Total liabilities (excluding pension obligations) are
forecast to be $13.4 billion, resulting in net financial assets of about
$15 billion.
ALBERTA'S
ACCUMULATED DEBT
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv49.gif)
- Alberta's accumulated debt is expected
to be reduced to $2.7 billion by March 31, 2006.
- Accumulated debt will have been cut by
nearly 90% since 1993-94.
CREDIT
RATING
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv50.gif)
- Alberta is the top province in Canada for credit worthiness. All major
rating agencies (Standard and Poor's, Moody's, and Dominion Bond Rating
Service) give Alberta "Triple A", the highest possible rating.
- The high ratings reflect Alberta's strong economic performance, high
income levels, low debt burden, and prudent fiscal management.
BORROWING
COSTS
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv51.gif)
- Alberta has the lowest interest rate spread relative to 10-year Government
of Canada bonds of any province in Canada.
- Alberta's strong fiscal performance and top credit rating have led
to lower borrowing costs for the province and local authorities that
borrow through the Alberta Capital Finance Authority.
BUDGET
PERFORMANCE INDEX
![](/web/20061208061544im_/http://www.finance.gov.ab.ca/publications/budget/budget2004/abadv52.gif)
- Based on the Fraser Institute's 2004 Budget Performance Index (which
measures the 5-year period from 1998-99 to 2002-03), Alberta topped
all other provinces and the federal government.
- According to the index, which is based upon the tax and spending
behaviour of governments, Alberta's performance surpassed second place
Ontario by 29%.
economic
freedom INDEX - CANADA
- Fraser Institute's measure of economic freedom (which indicates the
fostering of economic growth and prosperity through minimal government
regulation and taxation) rates Alberta number one in Canada as a place
to do business.
economic
freedom INDEX - NORTH AMERICA
- For the first time in the 20-year span of the measurement of economic
freedom, a Canadian province – Alberta – has broken into
the top 10 in North America.
Go to: Alberta
Tax Advantage
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