Why does alberta have no sales tax

It's something that we need to talk about now and then plan out what it looks like. Holden says he understands it's not a popular option but Alberta may not have another choice. And so hoping that they rebound isn't a plan," he said. Holden says that by reinstating the provincial carbon tax, the Alberta government would receive additional revenue.

Right now, Alberta has the federal carbon tax in effect, which Ottawa collects and provides rebates. As well, he says this will show the investment community how serious Alberta is about reducing carbon emissions. But Chetan Dave, assistant professor in economics with the University of Alberta in Edmonton, suggested the budget simply kicked the can down the road.

Dave said he also favours keeping corporate and personal income tax rates low to spur economic growth. A sales tax would allow Alberta — the only province without one — to address the deficit without having to rely on an energy sector-based recovery or making painful spending cuts, he suggested.

The result would be an acceleration of consumption that would add juice to the recovery phase. Frankly, this is already long overdue. Your time is valuable. Have the Top Business Headlines newsletter conveniently delivered to your inbox in the morning or evening.

Sign up today. Report an error. Editorial code of conduct. Skip to main content. With the majority of the oil patch foreign-owned, and many out-of-province workers, there is a lot of income leaving the province. A sales tax captures some of that income and wealth for Alberta. Inequality is high in Alberta. The International Monetary Fund and Conference Board of Canada are clear that high levels of inequality are slowing down economic growth.

Alberta needs to use all of the tools in the tool box to redistribute income and wealth so that we maximize jobs and economic growth. Exemptions for necessities and rebates for lower-and middle-income Albertans can make it fairer. And opting in to the federal HST can save costs.

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