NDP leadership hopeful Ganley unveils proposal for low-income tax relief
Alberta NDP leadership hopeful Kathleen Ganley says she wants to change the province's basic personal tax credit amount to offer targeted relief from rising costs.
Ganley's first policy proposal is to raise the basic income tax exemption amount to $26,000 from $21,855 in 2024 — meaning an estimated 150,000 more Albertans would not have to pay any provincial income tax, and more than 2.5 million others would save just over $400 per year.
On Monday, the Calgary-mountain View MLA said the entire tax relief plan would cost provincial coffers $1 billion but help those who struggle the most to afford the basics and also generate economic activity.
“Probably the single most common concern I hear from Albertans is that they can't pay their rent, they can't pay their mortgage, they can't pay their electricity bill and, increasingly, people's wages are falling behind the cost of living,” she said.
Ganley said the increased exemption would see those making up to $148,269 save just over $400 per year, but the value of the exemption would be phased out for higher earners, beginning with those who earn $177,922.01 or more of annual income.
Alberta already has the highest basic personal amounts among provinces in Canada.
The pitch comes after UCP Premier Danielle Smith promised during last year's election to create a new eight per cent tax bracket on annual income under $60,000, saving every Albertan $760 per year. The tax cut has yet to be introduced, but a costed platform, released last May by the UCP, estimated the change would cost $262 million for the partial fiscal 2023-24 year, eventually rising to $1.1 billion per year.
The province's 2024-25 budget will be unveiled Feb. 29.
Ganley said in the long run, both tax cuts would cost about the same, but hers would be distributed differently across income brackets.
“Our focus is about giving more to those at the bottom or the middle,” said Ganley.
Also running for leadership of the Opposition are Edmonton-whitemud NDP MLA Rakhi Pancholi and Edmonton-glenora NDP MLA Sarah Hoffman.
Both have argued that the federal government's consumer carbon tax has lost public support and the province needs to focus more on other initiatives to combat climate change, including Alberta's tax on large emitters.
Ganley agreed that public support for the consumer carbon tax is gone, but said it's a federal issue, whereas a provincial tax cut is within the province's power.
“So, (their) commitment is then either to join Danielle Smith in screaming at the federal government or to cross our fingers and pray for a (Conservative-led Pierre) Poilievre government in the future,” said Ganley
“What I'm proposing would help Albertans right now.”
The nomination deadline for NDP leadership candidates to register is March 15 and a new leader will be announced June 22.