United Conservative Party (UCP) leadership candidates say Alberta Premier Jason Kenney’s move to index personal income taxes to inflation is a “good first step.”
Kenney announced on Tuesday that Alberta will bring personal income taxes in line with inflation for the 2022 tax year because the government’s finances are “back in order.”
During the final UCP leadership debate in Edmonton on Tuesday night, Kenney’s former transportation minister Rajan Sawhney said the indexing is a “good first step” but said the government must index seniors’ benefits and index benefits for age as well.
“It’s important, when we’re a wealthy province and we’re a government and we have surplus revenues, if we can help we absolutely should help those Albertans who need it the most at this time,” Sawhney said.
The government de-indexed income taxes in 2019, meaning tax levels were no longer tied to inflation.
In a video posted to social media, Kenney said his government promised to get its fiscal house back in order. Now, the government is forecasting a surplus of $13.2 billion because of oil royalties, and because government spending is under control, Kenney said.
“We’ve delivered and now we’re putting more money back in your pockets.”
Kenney said the policy will benefit the average taxpayer by about $300. It will cost the province $300 million.
Former Children’s Services Minister Rebecca Schulz also said she was also happy to see the government reindex personal income taxes.
Independent MLA Todd Loewen said indexing personal income taxes has cost Albertans more every day since it was implemented in 2019.
UCP MLA Leela Aheer said the government has not yet reindexed age as it had promised and “that’s something that we have to do immediately, as well as Alberta seniors benefits.”
“The dollars in this province that you spend your hard earned tax money belongs with you and helping you to build your province and make things move forward for all of us,” she said.
Recent polls have placed Aheer and Sawhney at the bottom of the seven leadership candidates. Danielle Smith is leading the pack, followed by former finance minister Travis Toews, UCP MLA Brian Jean, Schulz and Loewen.
NDP Finance Critic Shannon Phillips said the government de-indexed personal income taxes in their first budget, which increased income taxes on Albertans.
“This tax increase has cost Albertans hundreds of millions in additional taxes during the worst affordability crisis in 40 years,” she said in a statement.
