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Alberta

Alberta government should finally undo tax hikes and help restore province’s advantage

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4 minute read

From the Fraser Institute

By Tegan Hill

During the election campaign, Danielle Smith promised to create a new 8 per cent tax bracket for personal income below $60,000. While the Smith government’s 2024 budget delayed this tax cut, the premier recently said a “substantial” cut is coming soon. That’s good news, but Smith shouldn’t stop at introducing a new bottom rate. It’s time to finally undo the NDP tax hikes and restore Alberta’s tax advantage.

As recently as 2014, Alberta had the lowest top combined (that is, provincial and federal) personal income tax (PIT) rate in North America. Paired with a low business income tax rate and no sales tax, Alberta had a powerful tax advantage that made the province a very attractive place to work and invest.

Back in 2015, however, the NDP government replaced Alberta’s single personal income tax rate of 10 per cent with a five-bracket system including a top marginal rate of 15 per cent.

Now Alberta has the 10th-highest combined PIT rate in North America. And crucially, we’re less competitive than key U.S. energy jurisdictions such as Texas, Wyoming, Oklahoma, Colorado, Louisiana, North Dakota and Alaska, which compete with Alberta for talent and investment.

Again, Premier Smith plans to create a new 8 per cent tax bracket for personal income below $60,000, which would be lower than the current bottom rate of 10 per cent, and save Albertans earning $60,000 or more an estimated $760 annually. That’s an important first step. However, Alberta still has the higher income tax rates introduced by the NDP—12 per cent, 13 per cent, 14 per cent and the top rate of 15 per cent.

To truly undo the NDP tax hikes, Smith should replace Alberta’s current multi-bracket PIT system with a single rate of 8 per cent, which would be the lowest provincial rate in Canada and one of the lowest top combined PIT rates in North America. The change would help restore Alberta’s tax advantage while saving approximately 2.3 million Albertans $1,573 per year (on average).

The tax change would also help boost the Albertan economy because high tax rates discourage economic growth by reducing after-tax income from work, savings, investment and entrepreneurship  while lower tax rates help attract high-skilled workers and investment, which fuels innovation, job creation and strong economic growth, and ultimately higher incomes for Albertans.

Fortunately, this tax change may be more fiscally feasible than one might think. Based on 2023/24 data from the Smith government, replacing Alberta’s multi-bracket PIT system with a single rate of 8 per cent would lead to an estimated revenue loss of $3.8 billion (or approximately 5 per cent of total provincial government revenue that year). But after factoring in the positive effects of increased work, savings and investment, the amount of revenue lost could be significantly lower.

According to Premier Smith, Alberta’s long-awaited income tax cut is on its way—and that’s good news for Albertans. But to undo the NDP tax hikes and reap the benefits of tax reductions, Smith should go further and replace the current system with a single 8 per cent rate.

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Alberta

Red Deer Justice Centre Grand Opening: Building access to justice for Albertans

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The new Red Deer Justice Centre will help Albertans resolve their legal matters faster.

Albertans deserve to have access to a fair, accessible and transparent justice system. Modernizing Alberta’s courthouse infrastructure will help make sure Alberta’s justice system runs efficiently and meets the needs of the province’s growing population.

Alberta’s government has invested $191 million to build the new Red Deer Justice Centre, increasing the number of courtrooms from eight to 12, allowing more cases to be heard at one time.

“Modern, accessible courthouses and streamlined services not only strengthen our justice
system – they build safer, stronger communities across the province. Investing in the new Red Deer Justice Centre is vital to helping our justice system operate more efficiently, and will give people in Red Deer and across central Alberta better access to justice.”

Mickey Amery, Minister of Justice and Attorney General

Government of Alberta and Judiciary representatives with special guests at the Red Deer Justice Centre plaque unveiling event April 22, 2025.

On March 3, all court services in Red Deer began operating out of the new justice centre. The new justice centre has 12 courtrooms fully built and equipped with video-conference equipment to allow witnesses to attend remotely if they cannot travel, and vulnerable witnesses to testify from outside the courtroom.

The new justice centre also has spaces for people taking alternative approaches to the traditional courtroom trial process, with the three new suites for judicial dispute resolution services, a specific suite for other dispute resolution services, such as family mediation and civil mediation, and a new Indigenous courtroom with dedicated venting for smudging purposes.

“We are very excited about this new courthouse for central Alberta. Investing in the places where people seek justice shows respect for the rights of all Albertans. The Red Deer Justice Centre fills a significant infrastructure need for this rapidly growing part of the province. It is also an important symbol of the rule of law, meaning that none of us are above the law, and there is an independent judiciary to decide disputes. This is essential for a healthy functioning democracy.”

Ritu Khullar, chief justice of Alberta

“Public safety and access to justice go hand in hand. With this investment in the new Red Deer Justice Centre, Alberta’s government is ensuring that communities are safer, legal matters are resolved more efficiently and all Albertans get the support they need.”

Mike Ellis, Minister of Public Safety and Emergency Services

“This state-of-the-art facility will serve the people of Red Deer and surrounding communities for generations. Our team at Infrastructure is incredibly proud of the work done to plan, design and build this project. I want to thank everyone, at all levels, who helped make this project a reality.”

Martin Long, Minister of Infrastructure

Budget 2025 is meeting the challenge faced by Alberta with continued investments in education and health, lower taxes for families and a focus on the economy.

Quick facts

  • The new Red Deer Justice Centre is 312,000 sq ft (29,000 m2). (The old courthouse is 98,780 sq ft (9,177 m2)).
  • The approved project funding for the Red Deer Justice Centre is about $191 million.
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Alberta

Made in Alberta! Province makes it easier to support local products with Buy Local program

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Show your Alberta side. Buy Local.

When the going gets tough, Albertans stick together. That’s why Alberta’s government is launching a new campaign to benefit hard-working Albertans.

Global uncertainty is threatening the livelihoods of hard-working Alberta farmers, ranchers, processors and their families. The ‘Buy Local’ campaign, recently launched by Alberta’s government, encourages consumers to eat, drink and buy local to show our unified support for the province’s agriculture and food industry.

The government’s ‘Buy Local’ campaign encourages consumers to buy products from Alberta’s hard-working farmers, ranchers and food processors that produce safe, nutritious food for Albertans, Canadians and the world.

“It’s time to let these hard-working Albertans know we have their back. Now, more than ever, we need to shop local and buy made-in-Alberta products. The next time you are grocery shopping or go out for dinner or a drink with your friends or family, support local to demonstrate your Alberta pride. We are pleased tariffs don’t impact the ag industry right now and will keep advocating for our ag industry.”

RJ Sigurdson, Minister of Agriculture and Irrigation

Alberta’s government supports consumer choice. We are providing tools to help folks easily identify Alberta- and Canadian-made foods and products. Choosing local products keeps Albertans’ hard-earned dollars in our province. Whether it is farm-fresh vegetables, potatoes, honey, craft beer, frozen food or our world-renowned beef, Alberta has an abundance of fresh foods produced right on our doorstep.

Quick facts

  • This summer, Albertans can support local at more than 150 farmers’ markets across the province and meet the folks who make, bake and grow our food.
  • In March 2023, the Alberta government launched the ‘Made in Alberta’ voluntary food and beverage labelling program to support local agriculture and food sectors.
  • Through direct connections with processors, the program has created the momentum to continue expanding consumer awareness about the ‘Made in Alberta’ label to help shoppers quickly identify foods and beverages produced in our province.
  • Made in Alberta product catalogue website

 

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