Alberta Premier Danielle Smith promoting budget’s income tax cut

A day after her government released its budget, Alberta Premier Danielle Smith has hit the road to sell its perks.

Alberta is projecting a $5.2-billion deficit, but is offering income tax cuts that will pull more than $1 billion from provincial coffers.

“Premier and I have definitely had some heated conversations over my time in this chair,” said Finance Minister Nate Horner.

“I’m sure we’ll come out the other end of this stronger than ever but we are fearful for Alberta households.”

The tax break was first promised in the 2023 election, and could save individuals up to $750 per year. But it also arrives at a time when the government is under fire — facing corruption allegations and the resignation of its infrastructure minister. 

“It doesn’t make sense to borrow money and send it back to Albertans,” said Duane Bratt, a political scientist at Mount Royal University.

Bratt believes the tax cut is a distraction from investigations into government interference and allegations of kickbacks related to private health contracts.

“This isn’t about the budget, this isn’t about fiscal responsibility, this is about appealing to her base and trying to change the channel on around a growing scandal,” said Bratt.

Smith says that in the face of U.S. tariffs that could hurt taxpayers and businesses, now is the time to put that money back into the pockets of Albertans so they can afford more.

“That’s money better spent on what you need and what you need for your families. It’s money to spend on your priorities,” Smith explained.

However, Tom Vernon, a political strategist with Crestview Strategy believes the government’s thought process is a smart one.

“How do we keep our core audience onside, how do we have some good news to talk about? Let’s do this tax cut. And this tax cut touches everybody and I think they’re hoping that buys them a little bit of credit,” said Vernon.

A new eight per cent tax bracket on the first $60,000 Albertans earn will mean savings on paycheques starting in July.

Critics, including the Opposition NDP, say the budget is irresponsible, and spending in key areas like health care and education don’t keep up with population growth and inflation.

But with no clear path back to balance, Horner says he will keep hiking Alberta’s portion of property tax bills and is exploring other fee increases to raise revenues.

-With files from the Canadian Press