The Alberta Liberals unveiled their own plans to balance the provincial ledgers with the announcement of their Fair Tax Plan.

The plan proposed by the Alberta opposition party in the Legislature calls for a progressive personal income tax system with higher rates on those who make more than $250,000, corporate tax adjustments, and reinvestment into carbon capture and storage funds.

It also calls for the elimination of the new Health Care Contribution Levy and taxes paid by small businesses earning under $500,000, as well as a rollback of the 7% increase in education property taxes, and an increase of government revenue through a 2% adjustment in the amount of tax paid by large corporations.

“Moving the province off the resource revenue roller coaster requires better options than what the premier is offering,” Alberta Liberal leader David Swann said in a press release. “The Fair Tax Plan will deliver real tax breaks to lower and middle income families, small businesses, and ensure all Albertans pay their fair share.”

With the province facing a $7 billion revenue shortfall, the Liberals argue the plan will generate an estimated $2.1 billion in revenue and savings, and that the remaining $4.9 billion revenue shortfall will be offset by a one-time transfer of funds from the Contingency Account.

Beginning January 1, 2016, the province will begin moving to a more progressive income tax than the current 10% flat rate, adding two new brackets for Albertans earning over $100,000 and $250,000 that will impact 330,000 people.

Anyone making over $100,000 annually will be taxed 10.5% in 2016, 11% in 2017 and 11.5% in 2018. Anyone making over $250,000 annually will pay 11% in 2016, 11.5% in 2017 and 12% in 2018 before returning to 11.5% in 2019. The government expects this to generate an additional $330 million in 2016-17 increasing to $730 million by 2018-19.

Under the Liberal’s plan, Albertans with taxable incomes below $50,000 will see a 0.5% reduction in their income tax rate. From there, Albertans will pay 9.5% on the first $50,000 of taxable income, 10% on the next $50,000, 10.5% on the next 50,000, 12.5% on the next $100,000, and 15% on the amount over $250,000.

Liberals claim this change to the income tax structure will generate roughly $11.3 billion in total revenue.

“Jim Prentice wants regular Albertans to pay for his government’s mistakes,” said Swann. “But, we believe in sharing the burden fairly and putting money back in the hands of those who need it the most.”

trevor.robb@sunmedia.ca

@SunTrevorRobb