Alberta Will NOT Start Its Own Personal Income Tax

I summarize why not in Canadian Public Policy’s October 2020 special issue on impacts of the COVID-19 crisis.

Full text:

Abstract:

Stephen Harper urged Alberta to introduce a separate provincial personal income tax (PIT) in his 2001 firewall letter when he was taking a break from partisan politics. Premier Ralph Klein ignored Harper’s idea rather than burden Albertans with unnecessary costs.

Current Premier Jason Kenney revived the Alberta PIT plan in November 2019, but put the idea on the back burner after the COVID-19 crisis blew a hole in the Government of Alberta’s accounts.

Proponents of a separate Alberta PIT must pin their hopes on a future federal government agreeing to Quebec’s request to grant provinces the right to collect all income tax and then send the federal portion to Ottawa.

Even if Quebec succeeds, I explain in my article why other provinces may not opt in.

Federal-provincial sharing of the income tax is one of Canadian federalism’s unsung success stories.

Canadian Public Policy has 3 volumes of articles on the social and economic impacts of COVID-19 in Canada. To see all the issues covered, scroll down at:

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