CALGARY (660 NEWS) – To say it’s an unpopular idea in Alberta politics would be an understatement, but a new report is suggesting the government bring in the PST.

The report was headed by economist Ken McKenzie at the University of Calgary School of Public Policy.

“The purpose of the report is to examine alternative ways of raising government revenue in Alberta,” said McKenzie. “In some cases, I argue for tax reductions and in others for tax increases.”

McKenzie argues a provincial sales tax should be implemented by the United Conservatives and that the province should keep the carbon levy.

The report also recommends staying with cuts to corporate taxes while retaining the progressive tax rate instead of going back to the flat rate.

Alberta’s fiscal crisis – MacKinnon report shows the need to cut spending – new @policy_school report shows how to fix taxation https://t.co/cqdz0E7lVy — Policy School (@policy_school) September 5, 2019

This comes following the results of the Blue Ribbon Panel report on Alberta’s finances. The report found the province is overspending and needs to take action, which some say foreshadow drastic cuts.

READ MORE: Big spender Alberta. Panel says savings to be found in health care, education changes

McKenzie says introducing a sales tax along with the possible cuts would help Alberta ease its dependence on oil revenues.

FULL REPORT