I am confused regarding the math used to determine corporate tax rates. When Rachel Notley was campaigning in 2015, she stated that corporate tax rates would increase by two per cent.
Unfortunately Mr. Jim Prentice argued it was in fact a 20 per cent increase. From 10 to 12 per cent is what percentage increase? If it was 10 per cent of taxable income and now it is 12 per cent of taxable income that appears to be two per cent more on taxable income. However, two per cent is 20 per cent of the previous 10 per cent rate.
Now we have learned that the small business tax will decrease from three per cent to two per cent. Is that a one per cent reduction, however the current party in power is calling it a 33.3 per cent reduction?
How is it that when taxes go up it is calculated one way and when they go down it seems to be calculated far differently? The math confuses me. Is it two per cent increase to corporations and one per cent decrease to small businesses; or was it a 20 per cent increase to corporations and 33.3 per cent decrease to small businesses.
Or does it depend on which party is in power. Please help me.
Loren Bourget, St. Albert
