The Calgary Chamber of Commerce is hailing the 2004 provincial budget as positive for business.
“This is a strong budget for business,” said chamber chair David Swanson. “The chamber is pleased to see reductions to corporate and small business taxes that will help to build our business environment.”
The general corporate income tax rate will drop to 11.5 per cent and the small business rate to three per cent, which according to the province will save Alberta companies $142 million in taxes next fiscal year.
However, the Calgary chamber is disappointed there were no provisions for an accelerated or a legislated schedule for further tax reductions – “a schedule that could add to our economic attractiveness,” said Swanson. “Of all budgetary years – if an accelerated-tax reduction schedule is not possible this year – when?”
Chamber president and CEO Murray Sigler expressed concern over support for tourism marketing. “The chamber has been a long-standing advocate of dedicating the hotel tax directly to tourism marketing. We were disappointed that we did not receive any indication of increased support for this area, ” he said.
The Canada West Foundation (CWF), a public policy research institute, said Alberta’s fiscal “renovation” has been good so far, with last week’s budget outlining the government’s plans to put the finishing touches on the renovations.
The CWF said the provincial government’s real challenge is to decide what to do next when Alberta’s debt has been eliminated. “What this government really needs – and what this budget did not deliver – is a sense of what this new house will be used for,” mused the foundation.
With an eye to the future, Alberta’s Certified General Accountants (CGA) Association applauded the government’s plan to push Alberta toward debt-free status, but expressed concern that current spending trends may threaten the long-term financial sustainability.
“It is important to remember that the fiscal health of Alberta is one-half good government and one-half good luck in terms of resource prices,” said John Carpenter, CGA Alberta’s executive director and CEO. “We can’t count on that good luck to hold forever, so good government demands careful planning. ”
It noted government program spending has increased by 48 per cent over the past eight years compared to population growth of 14.8 per cent. “The current spending trajectory simply isn’t sustainable and represents one of the most serious fiscal challenges facing our province.”
