Jack Mintz: The lost jobs and investment Albertans can expect from Rachel Notley’s tax hike

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This week, Alberta NDP leader Rachel Notley promised during the province’s election campaign to raise Alberta’s corporate income tax rate on medium and large…

That would mean that the combined impact of rate increases and scaling back capital cost allowances results in a total loss of $3.2 billion in investment and 93,200 potential or existing jobs.

to account for the impact of investment and tax planning losses that can result from a corporate income tax hike., I estimate that a three-point increase in the corporate income tax rate will cause the corporate tax base to shrink by 15 per cent. This would imply that the NDP estimates of the corporate tax hikes are off by close to $1 billion over three years. This does not include the loss in personal and excise taxes that would result from people becoming unemployed.

 

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