Why we need to rewrite the script on corporate taxes

The United Conservative Party demonized the NDP's proposals for a corporate tax rate increase during the recent provincial election campaign. But Calgary-based energy companies and other corporations have capitalized on tax rate decreases, firing workers instead of investing in them. (Samson/Unsplash)

During the provincial election campaign in Alberta, the United Conservative Party (UCP) frequently criticized the NDP for its proposed increase in the corporate tax rate from eight per cent to 11 per cent.

UCP candidate Brian Jean said the proposed NDP corporate tax increase would kill investment, jobs and economic growth in Alberta. But University of Calgary economist Trevor Tombe has argued an increased tax rate won’t necessarily erode employment and that the impact would depend on how much the tax base shrinks in response to the higher rate.