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Discussion Starter · #1 ·
I heard that Alberta plans to cut its corporate income tax in half and eliminate the personal income tax sometime in the future once the government plays catch up in programs it restrained spending inorder to eliminate the debt and save on those interest payments. It was a controversial move but I believe Alberta will now bear the fruits of its hardwork and patience. The planned catch up was a brilliant move too as it will improve quality of life.

So with the lowest unemployment rate in Canada and plans to soon implement the eliminate in the income tax and cut in corporate taxes, will Alberta steal bussinesses from other provinces with sky-high corporate income taxes? Will wealthy canadians relocate to Alberta for the tax advantage? Ditto for middle-class and lower-income Canadians for the same tax reasons, an increasing quality of life and the prospects for even better employment since companies will soon be able to afford to pay their workers highly competitive pay since they will have more residual income as a result of the tax cut?

I think the answer to all three will be yes; Alberta seems to be in a sweet position and a bright future. Unless I've got something wrong?

(Also, I was never a fan of equilization, and it's possible that the conservatives might form a minority government and manage to make the system more fair instead of Alberta and Ontario subsidizing the rest of Canada. If that happens, Alberta will also look highly attractive when compared to the American states. Investment in the province would be huge!)
 

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Mr. Haney(Cruz) for Pres.
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No way can they eliminate personal income tax!!!! They would get rid of health care premiums first, and they likely won't even do that.
 

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Discussion Starter · #3 ·
I was under the impression that taxes will be reduced once capital needs have been financed and with growing 1.5 billion annual surplus.

Alberta budget forecasts $1.5 billion surplus
Last Updated Thu, 14 Apr 2005 07:58:43 EDT
CBC News
EDMONTON - In its first budget as a debt-free province, Alberta boosted its spending, saved a little, but left taxes virtually unchanged and did not eliminate health-care premiums.

There were major increases for education, health and policing, more money for people receiving the Assured Income for the Severely Handicapped, and a predicted surplus of $1.5 billion.



Little in the budget was a surprise, with much previously announced or hinted at by Alberta Premier Ralph Klein.

Calling it an investment budget, Alberta Finance Minister Shirley McClellan said the province is heading into its second century with "an unparalleled opportunity to build on all the strengths Alberta has to offer."

She defended the level of spending – an almost 10 per cent increase over last year, and five times the rate of inflation – saying they simply listened to Albertans.

"What this budget is built on is what Albertans have told us," McClellan said. "We asked Albertans to tell us what their priorities were, and they did tell us that.

"My take on the budget spending is that it's appropriate to deliver the services the people of the province has asked us for.

"We can't do that without spending some money."

McClellan said when the province went through spending reductions a few years ago, "Albertans were told they would be rewarded when we had our fiscal house in order. This is another piece of it."
 

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Klein and friends don't seem too interested in giving Albertans a tax break.
A break would be good for business and individuals, like you say, but I think we need to keep it as a safety line, because oil is not going to last forever.
As the price rises, demand will fall, and Alberta will need a new vice.
 

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Discussion Starter · #5 ·
Yeah exactly, this is what I mean by having a massive influx of funds into the heritage fund for the next couple years. It makes sense to do that right away instead of cutting taxes. But say 5 years from now, again, from my understanding, isn't the overall plan to cut taxes to help the province attract bussinesses and investment, in order to diversify the economy?
 

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expo
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Other than oil, Alberta can thank the BC-NDP for scaring all the businesses that way in the 90s. If they are elected again on May 17th, you will get another wave.
 

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Discussion Starter · #7 ·
^ lol.. no comment.

But other than that, I'm not an expert or anything, just my view. If I'm wrong on something, please fell free to point it out.

I find the situation happening in Alberta to be very interesting.
 

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Discussion Starter · #9 ·
Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire and Tennessee.

New Hampshire and Tennessee tax dividend income though, and Alaska actually gives its residents a check every year due to still having a mammoth surplus and no debt to payoff.
 

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У Борщин
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Well I know that a lot of Saskatchewan businesses and offices move to Calgary, my mother's 2 previous employers went that way. She worked in the head offices or regional head centres and they were subsequently moved to Alberta.

Not only businesses move to Alberta though, it has long since been said that Saskatchewan's best export is its people, and most of them go to Alberta so... I myself as a University student know at this time there is more opportunity there than here. Here there are only 2 small city centres worth mentioning (Saskatoon and Regina), and they just don't have the economic pull that Edmonton and Calgary have.

Cutting the income tax will only cause more people to leave here unless the Saskatchewan government can think of something to stop it. That being said it has been the same for decades so I don't see it changing anytime soon.
 

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The Greatest
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Low corporate tax rates will definitely be advantageous to Alberta but less than you think. Corporate relocations can be hugely expensive; far outweighing the savings from lower tax rates

Alberta better remain cautious of their over-heated economy - the last thing they need is mass inflation
 

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Seeing that Alberta needs all the people it can to fuel its economy, why not set up exclusive Albertan immigration offices offshore. Or better yet, convince Immigration Canada to sell Alberta as the immigration happy province. :D
 

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Manitoba also has a special deal with the feds and now its population is growing faster than any point in the last 20years.
Alberta gets very few international immigrants. Its population growth, unlike Ontario, is due to Canadians moving there from other provinces. Most of those people move due good jobs but are therefore more likly to move away when times get tough.
 

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Not really. I dont see them suddenly fleeing. Once you are here for say 6 or 7 years Alberta's bust was still better than most other places in Canada.
 

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When you consider how alberta is booming and taxes are the lowest in the country I don't think Alberta is doing that well. Lets face it, boomin Alberta's population is only growing by by 1.4% / year........not too much. Yes, higher than any other province but still. Booming Calaagry isn't growing near as fast as Montreal little alone Toronto.
The GTA alone is growing faster than all the western & Atlantic provinces combined.
That's why I have a real problem with people saying the west is the new powerhouse. No its not, and its falling further behind Ontario.
 
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