Bill 3, if passed, will see the Province's corporate rate cut by one percentage point July 1st, making it the lowest in Canada. The rate would be reduced by the same amount on the first day of the following three years leaving it at eight percent by the year 2020. The government says the move will help to kick-start the economy, and create a minimum of 55,000 jobs.
The opposition NDP say it will leave a big revenue shortfall that will hurt health and education, while costing the province $4.5 billion in lost revenue over the next four years.
Alberta Finance Minister Travis Toews has predicted that the Bill will offset any revenue shortfall. Towes also said that the move will attract major investment back into Alberta.
“We recognize that we're competing for capital not only within the country but within the continent, and in fact globally. We know from an energy investment standpoint, Texas, the Dakotas, Colorado are competitors ... that we had to be aware of. So that was part of the reason why we believed we needed to go to eight per cent."
Bill 3 is one of the UCPs first pieces of new legislation, after the government introduced a Bill which would repeal the Province’s Carbon Tax by the end of May.