EDMONTON — Alberta is cutting business taxes, pumping billions into infrastructure and making a full-court press to lure jobs from Toronto, Montreal and elsewhere to rebound from the COVID-19 pandemic.
“We’re going to be placing a huge emphasis on finance and financial technology,” Kenney said Monday in Calgary.
“All of those banks and insurance companies down on Bay Street that are paying way more taxes. Their workers are paying way more taxes. They are paying way more for rent. They’re fighting Toronto traffic.
“We’re going to be telling them that they can save money for their shareholders, for their workers, for their operations by relocating financial and fin-tech jobs to places like downtown Calgary, downtown Edmonton.”
Kenney said they will also target companies in other locations such as Montreal, Houston and New York as his province works to dig out of a cratered provincial economy caused by the pandemic and by a global oil price war that sent profits into a tailspin.
Alberta has flattened the curve on COVID-19 and has reopened much of its economy, albeit with health safety conditions, and Kenney said now is the time to get the economy back on its feet.
This year’s budget deficit is expected to balloon from $7 billion to $20 billion.
Kenney announced an immediate $10 billion will be spent on a range of infrastructure projects, including roads, health-care facilities and schools to create construction jobs, with spinoff benefits to other service providers.
Kenney cut the corporate income tax rate to 10% from 12% after taking office last year. That figure was to go down to 8% in the coming years, but Kenney announced it will be done this week. That makes it four percentage points lower than key competitors such as British Columbia.
Albertans already have the lowest tax regime in Canada and pay no sales tax.
There will also be an Innovation Employment grant to encourage high-tech companies and investment. The grant replaces tax incentives put in place by the previous NDP government, which Kenney scrapped on the grounds the incentives were too narrowly focused.
Details on this fund, and other sector-specific initiatives are expected in the coming days.
NDP Opposition Leader Rachel Notley said the $10 billion will help as a short term “shock absorber” but called Kenney’s other ideas unimaginative, adding the corporate income tax cut didn’t bring back jobs before the pandemic, and won’t bring them back after.
“There’s very little new that is in here and it proves that this government is already out of ideas,” Notley said.
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