EDMONTON, AB: Tuesday’s second quarter fiscal update shows personal and corporate income tax revenue is down $339 million and $43 million respectively from Budget 2017 projections, proving yet again that the NDP’s 2015 tax hikes have had a negative impact on Alberta’s finances.
“In 2015, the NDP raised income taxes expecting to generate additional revenue but instead, they have the exact opposite effect and chased both jobs and investment from the province,” said United Conservative Opposition Leader Jason Nixon. “If the NDP was creating the kind of good, mortgage paying jobs it says it is, then income tax revenue would be trending up and not down. It’s clear this government’s plan to cover massive spending increases with income tax increases has failed miserably.”
Today’s update also showed a slight decrease to the budget deficit, which is now projected to total $10.4 billion by the end of the fiscal year. Despite making very little progress on spending reduction, the Finance Minister claims the NDP is on the right track to balance the provincial budget by 2023.
“This government claims to be on the path to balance, yet we have seen no meaningful action to suggest that it is serious about getting Alberta’s fiscal house in order,” said UCP Finance Critic Drew Barnes. “If the NDP wants to chip away at the deficit a few hundred million dollars at a time, it will take decades before Alberta sees a return to balanced budgets, by which time our children and grandchildren will be crippled by billions in interest payments alone. We owe future generations of Albertans so much more than this NDP legacy of deficits and debt.”