Kenney to slash corporate taxes if UCP wins election

CALGARY (660 NEWS) — With the spring election now no more than 12 weeks away, the United Conservative Party is laying out a major piece of its campaign platform.

Speaking from inside a vacant office space in downtown Calgary, leader Jason Kenney said his party wants to slash corporate taxes.

Job #1 is getting Albertans back to work. That's exactly what the UCP's Job Creation Tax Cut is for.

Read more: https://t.co/SkxImHUiFi pic.twitter.com/6laQA1nqa9

— Jason Kenney ???????????????????????? (@jkenney) March 4, 2019

“We’re facing an economic crisis as a province,” said Kenney. “We need to get the attention of investors and businesses — large and small — all across Canada and around the world, to send a message that we are open for businesses again.”

This cut would amount to a one-third reduction on corporate tax rates — from 12 per cent to 8 per cent — over four years.

Citing research done from local economists, Kenney said this cut would generate about $1.2 billion in revenue by 2023, and create at least 55,000 jobs.

He added that NDP policies, including raising the corporate tax rate, have backfired and resulted in more empty office spaces like the one he was speaking from on the 26th floor of the Edison Building.

“The NDP’s 20 per cent hike in business taxes reduced jobs, growth and revenues.”

He added the tax has also disproportionately affected small business owners.

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Kenney said this is an evidence-based decision. while the NDP have only been sticking to an ideology.

“Albertans have a choice. They can either listen to the stale class warfare rhetoric of the NDP, or they can actually follow the evidence. We prefer evidence-based policy,” said Kenney.

There is also ample evidence that raising corporate taxes can improve the economy, and the results from the United States government reducing corporate taxes has had mixed results during Donald Trump’s presidency.

But the UCP leader said this has been done before in Alberta, however when oil prices were about twice as high as they are right now.

“Between 2000 and 2006, Alberta reduced its general business tax rate from 15.5 per cent to 10 per cent, and revenues generated from the business tax went up by 80 per cent.”

Also, the plan would not have immediate effects — resulting in a nearly $350 million shortfall in the first year — but Kenney would offset this by cancelling the recent $3.7 billion NDP plan to lease rail tanker cars and boost crude by rail shipments.

READ MORE: Alberta Opposition Leader Jason Kenney says he would shelve oil-by-rail deal

But in response, Alberta’s premier said this only amounts to a handout for the rich and will have consequences.

“Mr. Kenney and the UCP think the bigger priority is to help profitable corporations,” said Rachel Notley. “A move that will cost the Alberta treasury about $4.5 billion over the course of four years.”

Notley said Alberta already still has some of the lowest taxes among Canada, and cutting this corporate rate would result in cuts to other sectors, including education.

“In our view, we need to make sure that Alberta works for everyone, especially those kids. Not just the very, very rich and the corporate elite,” said Notley.

Kenney is hopeful this plan will drive more corporations back into the province, as by 2022 the UCP plan would make Alberta’s general business tax rate lower than 44 U.S states.

“The reason we’ve gone with such a bold reduction on taxes on job creators is because I want the presidents of publicly-traded companies in Toronto and Montreal and Vancouver, to feel compelled to go to their boards to say how much they could save in taxes if they were to relocate to Alberta.”