The premier is narrowing the options he’ll pursue to rescue the provincial budget from the drop in oil prices, but some critics think he should be more ruthless, like Ralph Klein.
Jim Prentice says he does not foresee hiking Alberta’s 10 per cent corporate tax as a way to help replace the billions of dollars siphoned from the treasury because of the oil price collapse.
Prentice says other provinces have similar corporate tax rates, and he says to hike Alberta’s levy risks making it uncompetitive.
“Other Canadian provinces have caught up to the Alberta Advantage, and I think it would be unwise at this point to increase our corporate income tax,” he told reporters.
“If we do that, it will simply result in less investment, fewer jobs … I think it would be the wrong thing to do at this point in time.”
The premier has previously said he doesn’t want to hike oil royalty rates, and on the weekend told the Calgary Herald the proposal for a provincial sales tax idea is effectively dead.
He is still considering changes to the 10 per cent flat tax on personal income as well as delaying capital projects. Prentice said his government is now talking to public sector union members about their salary deals, which Prentice calls unsustainable.
Meanwhile, the Canadian Taxpayers Federation has launched a petition asking Albertans who want to hold the line on spending and a provincial sales tax to sign up online.
The campaign, entitled “Be Like Ralph,” asks Prentice to govern more like former premier Ralph Klein in the 1990s when he wiped away the provincial deficit with deep cuts to spending, social programs and rollbacks to public service wages.
“When Premier Klein was in office he faced numerous challenges, but he didn’t raise taxes,” said Colin Craig, prairie director for the federation. “He rolled up his sleeves and got spending under control in a number of different areas.
“Play hard ball with the unions, absolutely. For too long they’ve been playing soft ball.”
But Gil McGowan, president of the Alberta Federation of Labour, said public sector workers have negotiated collective agreements in good faith and dishonouring them would be illegal.
With files Chris Varcoe, Calgary Herald
