Premier Jason Kenney (left) and Lethbridge-West MLA Shannon Phillips (right). (Lethbridge News Now / Alberta's NDP)

By David Opinko/LethbridgeNewsNOW

Kenney suggests reintroducing flat tax, but Phillips says it only benefits the rich

Dec 21, 2021 | 1:07 PM

Alberta’s Premier is mulling the possibility of reimplementing a tax system that used to be utilized in the province, but the suggestion is not sitting well with one of Lethbridge’s MLAs.

In an interview with the National Post, Jason Kenney talked about his belief that the flat tax had been beneficial to Alberta.

The idea of a flat tax is that everyone would pay the same percentage of personal income taxes, regardless of what their income levels are.

Between 2001 and 2015, the province had a flat tax of 10 per cent.

Kenney told the National Post that this system resulted in significant amounts of new investments in the province.

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However, Lethbridge-West MLA Shannon Phillips told LNN that a flat tax is nothing more than a nicer way of phrasing a tax cut for the wealthy.

“If [Kenney] were to make the tax changes that he is talking about, only people making over about $130,000 to $150,000 a year would benefit.”

According to Phillips, who also serves as the NDP’s Finance Critic, approximately 90 per cent of Albertans would not see any reductions in their taxes.

She also disputed the premier’s claim about more money coming into the province as a result of the now-former tax scheme, calling it “complete nonsense” that someone would move to a different province to save two-to-five per cent on their personal income taxes.

The MLA also called into question other tax-related decisions the UCP government has implemented, such as ending the practice of adjusting tax brackets to reflect inflation.

Phillips says that has resulted in everyday Albertans losing more and more money each year as inflation drives up their cost of living.

Kenney has repeatedly stated that he would not introduce PST in Alberta and said in a recent speech that UCP tax policies have continued to attract investments to the province.

READ MORE: Kenney says no new taxes as Alberta preps for another tough times pandemic budget

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