Alberta business organizations express worry about possible tax increases

Economists are anticipating that the federal government will introduce tax increases in its upcoming budget announcement, causing concern among Calgary’s business community. With recent multi-billion dollar spending announcements, there is speculation that new taxes targeting corporations and the wealthy may be on the horizon.

Finance Minister Chrystia Freeland has assured that the deficit will not increase in the upcoming budget, emphasizing the need for revenue to bridge the spending gap. One proposed measure is an increase in the capital gains inclusion rate, which could generate significant revenue.

However, the possibility of a windfall tax on sectors like oil and gas has raised alarms in the business community. While some advocate for this tax, others believe it could stifle innovation and investment.

The Business Council of Canada has warned against increased corporate tax rates, citing potential negative impacts on business investment. Despite the housing efforts announced ahead of the budget, concerns remain about the urgency of building and the lack of specific timelines.

Advocacy groups are seeking clarity on the government’s housing goals, particularly in light of rising home prices. The $1 billion National School Food Program and other affordability measures are seen as positive steps, with a focus on addressing poverty as a cost-saving measure.

As the budget announcement approaches, stakeholders are eager to see how the government plans to address these economic challenges and balance its spending priorities.