Dear editor,
Alberta indexing for inflation cut-off on 10 per cent income tax rate increased by 2.3 per cent for 2022, from $131,220 to $134,238.
Indexing increased by a whopping six per cent for 2023, from $134,238 to $142,292. On an individual income basis, this equates to an increase of $11,000 over two years. For dual-income couples, this could equal an increase of $22,000 (federal tax deductions notwithstanding).
Alberta has a corporate tax rate at 8.5 per cent, followed by Quebec's 11.5 per cent. Ours is the lowest in Canada and among the lowest in North America.
Upper-middle class Albertans with extra $11,000 to $22,000 can afford to buy luxury items without adverse effect, since Alberta has no sales tax.
The 8.3 per cent tax rate will never decrease in the future for the upper-middle class. There was no inflation indexing for lower income earners; therefore, they proportionately pay more taxes and have less earning power.
Alberta as a democratic capitalist province has multiple tax-free and avoidance financial schemes that benefit the wealthy, married, families, parliamentarians (since they create the formulas) and corporations. Lower income persons are always the financial losers.
Lin Gackle
Sunset Ridge
