EDMONTON — Finance Minister Joe Ceci dismissed criticism from his federal counterpart and provincial opposition parties over corporate tax hikes Wednesday and said the NDP government plans to forge ahead in short order.
The NDP government will introduce Bill 2, which lays out its tax plan, on Thursday, but Premier Rachel Notley confirmed this week the promised two percentage-point increase to the tax on corporate profits will come into effect on July 1.
Speaking to reporters at the legislature, Ceci said he wasn’t concerned about the comments from Oliver about corporate taxes.
“He did say he knows ideologically we are on different teams, so I take that to mean he’s driving them down and I think that fair taxes are something that’s important to Alberta,” said the Calgary-Fort MLA.
In the truncated sitting of the legislature, the newly elected NDP government is putting forward legislation to meet its campaign commitments on corporate tax and to fund the operations of the government ahead of the release of its actual provincial budget, which Notley confirmed Wednesday would be in October.
Oliver, whose office did not respond to requests for comment, marked his opposition to Alberta’s corporate tax hike as he slammed federal NDP Leader Tom Mulcair for promising to raise the federal 15 per cent corporate tax rate while misstating the actual figure.
Mount Royal University political scientist Duane Bratt said Oliver’s remarks are more about national politics — and the federal election slated for Oct. 19 — than about the relationship between Edmonton and Ottawa.
The election of Rachel Notley’s NDP in Alberta helped jump-start Mulcair’s political fortunes, so the federal leader will highlight anything positive from the new government while the federal Conservatives will zero in on any stumble, Bratt noted.
The timing of the provincial budget may even play a role in the federal campaign, as it could either help or hinder Mulcair, he said.
In question period Wednesday, Wildrose Leader Brian Jean, a former Conservative MP, pressed the government to release its budget in September rather than October.
“Will the premier confirm and assure that federal politics has nothing to do with when she will release the budget?” said Jean.
She insisted the release of the budget in October is to ensure it has been properly researched and allows time for debate.
The NDP campaigned both on raising the corporate tax rate to 12 per cent and introducing higher tax brackets on those making over $125,000.
Under its tax collection agreement with the federal government, the earliest the income tax changes could be introduced is Jan 1. But Ceci said he has discussed the issue with Oliver and would talk further on it when Bill 2 is introduced.
Bratt said the government has no choice but to move as quickly as possible to implement its corporate tax changes for the two reasons: it was a signature promise by the NDP that helped derail the Tory dynasty in last month’s election and the new administration needs cash.
To meet campaign commitments, the NDP has increased spending in advanced education, education, health and human services.
In the legislature Wednesday, Progressive Conservative finance critic Manmeet Bhullar noted the province takes in a substantial portion of its tax revenues from a small percentage of businesses and individuals.
He suggested the government’s policy changes could drive those taxpayers away.
“If those people move, the burden shifts to the middle class,” said Bhullar.
But in the house, Ceci dismissed the idea of losing people and businesses to other provinces and said 93 per cent of tax filers would not see an increase from the NDP plan.
“I see lots of people who don’t really think that’s a major issue for their corporations,” said Ceci.