Description
The Alberta Tax Advantage is a set of estimates of the additional tax burdens Albertans and Alberta businesses would be subject to if Alberta had the tax systems of other provinces. The estimates are published each year in the provincial budget. Tax advantage estimates are calculated for personal and corporate income taxes, sales taxes, health care premiums, payroll taxes, fuel taxes, and other taxes, which includes tourism levy, capital taxes, land transfer taxes, tobacco taxes, and revenue from alcohol sales (Alberta does not tax alcohol sales, but does levy a liquor mark-up. Other provinces tax alcohol sales, so all provincial revenues collected from alcohol sales are included for comparative purposes). Each estimate is then used to determine the tax advantage or disadvantage that Albertans and Alberta businesses have as a result of Alberta’s tax system (versus other provincial systems). The estimates for each tax component are aggregated to determine the total advantage provided by Alberta’s tax system. The estimates are calculated by applying the known tax rates of other provinces to Alberta tax bases. For example, the fuel tax rates for other provinces are applied to Alberta fuel volumes, while provincial personal income tax systems are applied to Alberta tax filer data. If a province levies a tax that is not levied in Alberta, the tax burden and Alberta tax base will be estimated using alternative methods.
Updated
May 15, 2015
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Alberta Tax Advantage, 2014
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Title and Dataset Information
Date Modified
2015-05-15
Update Frequency
Annual
Publisher / Creator Information
Creator
Publisher
Treasury Board and Finance
Subject Information
Resource Dates
Date Created
2015-05-13
Date Added to catalogue
2015-05-13T19:24:57.420031
Date Issued
2014-04-28
Date Modified
2015-05-15
Audience information
Language
Identifiers
Usage / Licence
Usage Considerations
The Alberta Tax Advantage can be used to estimate the advantage that Alberta's tax system provides to Albertans and Alberta business. The estimates are calculated using tax rates, tax structures, and the corresponding Alberta tax bases that are known or estimated at a specific point in time (usually in January or February when budget documents are drafted).
Taxpayer behaviour would differ under alternative tax structures. These estimates, however, assume no behavioural responses to changes in the tax system.