Opinion

UCP Tax Cut Hits the Target but Misses the Mark

Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr

Published

6 years ago

7 minute read

Opinion by Cory G. Litzenberger

Well for fear of being lynched, let me talk about how I think the UCP’s Job Creation Tax Cut may be (partially) incorrect.

While I applaud politicians for laying out their plans in advance of an election, my fear is that the plan is too slow in implementation and cuts too far.

I think a tax cut needs to be moderate and quick – not slow and deep.

Here are my thoughts for various tax changes we need to do in Alberta:

General Corporate Income Tax Rate:

Instead of cutting by 1% per year over 4 years, bring it back by 2% to 10% from 12% in the first year and keep it there.

By delaying the cut as the UCP currently proposes, it could reduce the impact it will have on the economy as the change to the bottom line will not be impacted enough for a corporation to make larger investment until year two or three of the plan.

Quicker action by government will result in quicker action by business, resulting in quicker action in the economy and job creation.

10% also still makes us the lowest jurisdiction in Canada.

Personal Income Tax change to 3 brackets:

– 8% for first $50k
– 10% for the next $100k
– 12% for over $150k

This reduction from 10% on the first $50,000 saves roughly $600 in personal income tax (after factoring in the basic personal tax credit) for every individual making more than $50,000 a year.

It also saves 2% for those making under $50,000 currently.

This is an important cut in order to reward people that call Alberta home, as you will see below.

A rich person paying 12% in Alberta on their personal income is better than them paying 0% because they live somewhere else.

Harmonized Sales Tax (HST) 5%

Yes, I think we need to remove the inflationary and regressive carbon tax as it is way too high of a burden and causes a ripple effect in inflationary pricing how it was implemented.

However, I suggest we implement a 5% HST (which is a flow-through for businesses and does not have the same impact on pricing).

Now, hear me out before you break out the yellow vest!

Currently, anyone visiting our province as either a tourist or a temporary worker from another province are using our infrastructure like roads, water, and yes, even hospital emergency rooms.

When these non-Alberta residents file their personal tax returns, they file it based on their home province of residence as of December 31. Since most of them don’t have a permanent residence in Alberta, this results is them paying income taxes to other provinces, while using our infrastructure for free.

Other provincial residents not paying any taxes in Alberta while here unfairly puts the cost on all of us that live here.

If we implemented an HST similar to the GST program, low income households would still receive credit back (just like GST credit) to offset most (if not all) of any HST they pay.

The $600 in income tax savings we mentioned above for everyone else, is equivalent to $12,000 of taxable supplies consumed ($24,000 in a double income household where they each make over $50,000 of income).

Don’t forget that basic grocery and shelter do not have sales taxes, and if Andrew Scheer gets elected, neither will basic home heating.(https://twitter.com/andrewscheer/status/854364648388182016)

This income tax reduction of $600 to $1,200 would offset much of the sales tax you would pay, but would now start to charge non-Alberta resident visitors and workers.

The reason for an HST instead of a PST is that currently, an HST is required to be charged by all GST registrants across Canada. If you are a GST registrant, you are automatically an HST registrant.

For example, in my office in Red Deer, I have to charge my Ontario customers HST and send it in to the government even though my business is in Alberta.

An HST could reduce the potential for tax leakage out of our province by funneling it back to Alberta because of other retailers in other provinces requiring to charge it on things purchased outside of, or shipped to, Alberta.

Results

– a competitive corporate tax rate to attract investment and do it quicker than the original UCP plan;
– low personal income tax to attract wealthy individuals (and their tax residency) back to Alberta to make it their place of residence, again, quickly;
– removal of the inflationary carbon tax;
– insertion of a relatively low cost HST so that we can get back some of that transfer payment money from the residents of other provinces.

In Summary

– Reduce Corporate moderately and quickly.
– Reduce Individual moderately and quickly.
– Remove Carbon tax.
– Implement an HST.

I know that the slight mention of a sales tax in Alberta makes the hair on the back of your neck stand straight up, and for many conservative politicians, they would resign before suggesting it. However, even as a fiscal-conservative tax accountant like myself, I believe that if it is implemented properly with tax reductions elsewhere, it can add to the bottom line for the province.

I also think it can do so without being a burden to those that live here by taxing those that don’t.
———
Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr is the President & Founder of CGL Strategic Business & Tax Advisors; you can find out more about Cory’s biography at http://www.CGLtax.ca/Litzenberger-Cory.html

Cory G. Litzenberger, CPA, CMA, CFP, C.Mgr

CEO | Director CGL Tax Professional Corporation With the Income Tax Act always by his side on his smart-phone, Cory has taken tax-nerd to a whole other level. His background in strategic planning, tax-efficient corporate reorganizations, business management, and financial planning bring a well-rounded approach to assist private corporations and their owners increase their wealth through the strategies that work best for them. An entrepreneur himself, Cory started CGL with the idea that he wanted to help clients adapt to the ever-changing tax and economic environment and increase their wealth through optimizing the use of tax legislation coupled with strategic business planning and financial analysis. His relaxed blue-collar approach in a traditionally white-collar industry can raise a few eyebrows, but in his own words: “People don’t pay me for my looks. My modeling career ended at birth.” More info: https://CGLtax.ca/Litzenberger-Cory.html

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espionage

Hong Kong Police Detain Relatives of Canadian Candidate Targeted by Beijing Election Interference

Published on May 8, 2025

Todayville

Sam Cooper

Move follows aggressive PRC disinformation against Joe Tay, RCMP security warnings, and raises pressure on Prime Minister Mark Carney after White House meeting

In a striking escalation of Beijing’s interference in Canada’s Parliament and its global campaign to silence dissent, Hong Kong police have reportedly detained and questioned relatives of former Conservative election candidate Joe Tay—who was targeted by aggressive Chinese cyber and ground operations during the recent federal campaign, according to The Bureau’s intelligence sources.

The move to detain and question Tay’s cousin and the man’s wife in Hong Kong—reported by multiple sources, including Hong Kong Free Press—appears aimed at ramping up pressure on Liberal Prime Minister Mark Carney, whose campaign plausibly benefited from Beijing’s interference and the Liberal pledge to fight President Donald Trump’s global tariff regime.

Tay, who lost by roughly 5,000 votes to his Liberal opponent in Don Valley North, has yet to comment on the detentions. As The Bureau previously reported, the RCMP advised Tay to suspend in-person campaigning during the final week of the election due to credible threats tied to foreign interference.

The reported detentions occurred Thursday morning in the Fo Tan district of Hong Kong, where Tay’s relatives were taken to a police station for questioning. While Hong Kong police have not publicly confirmed the operation, the tactic aligns with the Chinese Communist Party’s growing use of family-based intimidation to suppress overseas dissent—a strategy documented across multiple countries by rights monitors and Western intelligence agencies.

Thursday’s detentions came just 48 hours after Carney’s closed-door meeting with U.S. President Donald Trump and Vice President J.D. Vance in Washington. Carney has not publicly commented on the content of the meeting, but according to a U.S. intelligence community source, the agenda likely included PRC political interference, trade, espionage, fentanyl trafficking, money laundering, and Chinese national security threats across North America.

Tay, 62, became a top target of Chinese interference networks during the 2025 campaign. Federal intelligence officials and The Bureau identified a coordinated foreign interference operation that promoted disinformation against Tay and other Conservative candidates across PRC-linked channels, particularly on WeChat, with the goal of depressing Chinese-Canadian voter turnout for the Conservative Party.

The SITE Task Force assessed that Tay was subject to a broader transnational repression campaign. PRC-linked accounts circulated narratives portraying Canada as a refuge for fugitives if Tay were elected—rhetoric that was echoed publicly by Liberal MP Paul Chiang, who was supported by Prime Minister Carney after those comments were publicized. Chiang’s campaign collapsed under international pressure after the RCMP announced it would review the matter.

That Beijing appears resolved to continue persecuting Tay and his family—even after his electoral defeat—points to a broader and deeper strategic objective behind this singular, confirmed case of interference. It also presents an early and consequential test for Prime Minister Carney, who campaigned on defending Canadian sovereignty while opposing Donald Trump’s tariff agenda. The timing of the escalation—detaining relatives of a defeated Canadian dissident just days after Carney’s May 6 White House meeting—suggests the PRC may be actively probing Ottawa’s resolve under new leadership.

The Bureau has extensively documented this repressive strategy. On April 10, 2025, The Bureau confirmed that Hong Kong activist Frances Hui’s parents were detained by Hong Kong national security police, following Hui’s testimony before Canada’s Parliament. Hui, now based in Washington, had previously revealed she was allegedly stalked and threatened by a suspected PRC agent.

Tay’s case fits an increasingly global pattern. The Bureau has learned that a report reviewed by Toronto police during the campaign involved a suspected stalking threat against members of Tay’s team. And now, even after democratic outcomes, the Chinese state appears determined to punish political critics through surveillance, coercion, and intimidation directed at family members—sending a clear message to diaspora communities and foreign governments alike.

The formal charges against Tay were issued by Hong Kong police in December 2024. According to official documents reviewed by The Bureau, Tay—born 12 December 1962—was charged with:

Incitement to secession
Collusion with a foreign country or with external elements to endanger national security

Authorities allege that between July 2020 and June 2024, Tay operated a platform called HongKonger Station, through which he published “numerous videos inciting secession” and “repeatedly urged foreign countries to impose sanctions” on officials in Beijing and Hong Kong.

The SITE Task Force confirmed that these charges were disseminated and amplified by Chinese intelligence-linked networks during Canada’s 2025 campaign, as part of a broader information warfare effort to delegitimize Tay and portray his candidacy as a national security threat to China.

At the time the charges were announced, Canada’s Foreign Affairs Minister Mélanie Joly condemned them, warning that Beijing’s extraterritorial use of its National Security Law undermined international norms and democratic principles. Since Tay’s defeat—and her party’s electoral victory—Joly has not made any further public comment.

The Bureau will seek comment from Carney and his government today and update this story.

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Business

Global trade reorder begins in Trump deal with United Kingdom

Published on May 8, 2025

Todayville

From The Center Square

By Brett Rowland

Seeking to reorder global trade with America at the center, President Donald Trump announced the framework of a trade deal with the United Kingdom on Thursday.

Prime Minister Keir Starmer, since 2024 leader of a nation that maintains a special relationship with the U.S. including a more even trade balance than with other countries, spoke with the president by phone during an Oval Office meeting Thursday morning.

“This is turning out to be a great deal for both countries,” Trump said.

The 78-year-old second-term Republican president said the deal would improve market access for U.S. products in the United Kingdom, and improve the relationship between the two countries. Trump said it was the first of many deals from his trade team.

The 62-year-old leader of the Labour Party said the deal would create new jobs in both nations.

“We can finishing ironing out some of the details, but there’s a fantastic platform here,” Starmer said, calling the deal “historic.”

Commerce Secretary Howard Lutnick said the U.S. has balanced trade with the United Kingdom. Lutnick said it would add $5 billion in market access to the U.S. Lutnick said the United Kingdom would get a 10% tariff on 100,000 automobile imports to the U.S., lower than the 25% tariff on foreign autos for other nations.

Lutnick said the lower tariff would protect jobs in the UK.

On social media, Trump wrote, “Today is an incredible day for America as we deliver our first Fair, Open, and Reciprocal Trade Deal – Something our past Presidents never cared about. Together with our strong Ally, the United Kingdom, we have reached the first, historic Trade Deal since Liberation Day. As part of this Deal, America will raise $6 BILLION DOLLARS in External Revenue from 10% Tariffs, $5 BILLION DOLLARS in new Export Opportunities for our Great Ranchers, Farmers, and Producers, and enhance the National Security of both the U.S. and the UK through the creation of an Aluminum and Steel Trading Zone, and a secure Pharmaceutical Supply Chain. This Deal shows that if you respect America, and bring serious proposals to the table, America is OPEN FOR BUSINESS. Many more to come — STAY TUNED!”

Trump announced a slate of higher tariffs on foreign nations on April 2, which he dubbed “Liberation Day” for American trade. On April 9, Trump paused those higher rates for 90 days to give his trade team time to make deals with other countries.

When Trump temporarily suspended the higher tariffs on April 9, he kept a 10% baseline tariff in place along with a 25% import duty on foreign autos and auto parts. He also kept 25% tariffs on foreign steel and aluminum.

Trump also imposed 145% tariffs on China, which retaliated with 125% tariffs on U.S. goods. Those tariffs remain in place, although the two nations are set to begin talks this weekend.

Economists, businesses and many publicly-traded companies have warned that tariffs could raise prices on a wide range of consumer products.

Trump has said he wants to use tariffs to restore manufacturing jobs lost to lower-wage countries in decades past, shift the tax burden away from American families, and pay down the national debt.

A tariff is a tax on imported goods. The importer pays the tax and can either absorb the loss or pass the cost on to consumers through higher prices