Alberta to invest billions, cut corporate tax rate in bid to stimulate economy
|Toronto Star 29 Jun 2020 at 14:20|
EDMONTON—Alberta will cut its corporate tax rate and invest billions of dollars to create an estimated 50,000 jobs this year, Premier Jason Kenney announced Monday.
The provincial government will inject $2 billion in infrastructure spending. Alberta will also cut the corporate tax rate from 10 to eight per cent by the beginning of July, a move that accelerates the province’s original plan to reach eight per cent by 2023.
It will be the lowest corporate tax rate in Canada.
“We really do mean business,” Kenney told a news conference.
The provincial money will go toward a range of construction projects, such as roads, schools, hospitals, pipelines, waterway projects and overpasses.
Finance Minister Travis Toews pegged the actual unemployment rate for Alberta at 20 per cent even as the official number hovers around 15.5 per cent. Kenney added that, in the future, the unemployment rate could climb as high as 25 per cent.
The province has been battered by the COVID-19 pandemic, which has ground economic activity to a crawl, as well as a global oil price war between Russia and Saudi Arabia, which has crushed Alberta’s energy industry.