Alberta Throne Speech unveils increase in corporate, personal tax

JUSTIN GIOVANNETTI, EDMONTON — The Globe and Mail, Published Monday, Jun. 15, 2015 5:33PM EDT, Last updated Monday, Jun. 15, 2015 7:02PM EDT, Source

Alberta Premier Rachel Notley and Minister of Infrastructure and Minister of Transportation Brian Mason applaud after the speech from the throne in Edmonton, Alta., on Monday, June 15, 2015.
(The Canadian Press)

The first steps of Alberta Premier Rachel Notley’s NDP government were unveiled on Monday in a Speech from the Throne announcing immediate plans to raise the province’s corporate and personal income taxes while ending political donations from corporations and unions.

Ms. Notley has been largely tight-lipped about her party’s plans since the NDP was swept into office on May 5, ending nearly 44 years of Progressive Conservative rule in Alberta.

With only three pieces of legislation announced on Monday, the legislature is expected to sit for a short session before a summer break.

The NDP government’s first bill, entitled An Act to Renew Democracy in Alberta, will end all corporate and union donations to political parties in the province. Ms. Notley also announced plans to strike a special committee of MLAs to conduct a larger review of the province’s election laws.

“Our political system has been far, far too dependent on funds from a narrow range of donors with deep pockets,” Ms. Notley said on Monday. “We will tilt the playing field back in Albertans’ favour.”

Interim PC Leader Ric McIver criticized the legislation and said it targeted his party because the Tories have traditionally been the most reliant on corporate donations. After the spring election, the party’s bank accounts are empty and Mr. McIver admitted that he is concerned about fundraising if corporate donations are banned.

The Speech from the Throne made no mention of an NDP promise to review the level of royalties paid on energy production in the province, despite that review being a central plank of the party’s election platform. The speech, read by Lieutenant-Governor Lois Mitchell, also made no mention of the controversy over plans to build pipelines.

“I’m a little disappointed by how thin of a Throne Speech it was,” Wildrose Leader Brian Jean said.

The NDP’s second bill will increase the province’s corporate tax rate to 12 per cent from 10 per cent and end the province’s flat income tax, something Ms. Notley characterized as a “brief and unfortunate experiment.”

The NDP campaigned on a pledge to increase the income tax for those making more than $125,000 to 12 per cent, while also adding a second bracket of 15 per cent for those making more than $300,000.

The third piece of legislation planned for the legislature’s sitting will provide funding for government operations over the summer as the NDP works to write and introduce a full budget in the fall.

“It’s in my view harmful and negative there won’t be a budget until the fall. Uncertainty drives away investment,” Mr. McIver said.