A Sales Tax for Alberta Why and How

The days of buoyant capital investment, jobs, and wealth are passing Alberta by as the boom-and-bust cycle runs its course and the global climate crisis becomes more acute. As the province scrambles to boost the dying oil economy and curb spending, one solution is all but ignored—a sales tax. In this collection, Alberta scholars and policy experts map out why and how a provincial sales tax should and can be implemented.

Drawing on policy analysis, recent history, personal experiences, and conversations with Albertans, former politicians, and senior public servants, contributors build a decisive case for why a sales tax is a more efficient tax than corporate or personal income taxes. They examine energy revenues, household incomes, and political support as well as opportunities for improving democracy and reducing the volatility of government revenues. Finally, this volume offers recommendations on structuring a consultative review process to improve Alberta’s long-term fiscal sustainability. 

In Alberta’s rich history, no public policy measure has been more mythologized than a sales tax. The province remains the only one in Canada not to have one, despite withering pressure on government revenues. A Sales Tax for Alberta arrives at time when the possibility of such a levy seems more possible than ever, which makes its content more relevant and important than ever. From the political implications of bringing in such a tax to the dire need to end the ceaseless volatility around provincial revenues, this book serves as an all-encompassing guide. More than anything, it is vital reading for anyone looking for an articulate, well-rounded view of this highly combustible issue.

Gary Mason, Globe and Mail

Bob Ascah has done all Albertans a service by putting together this collection on one of our province’s most pressing issues—whether it is time for a provincial sales tax. A Sales Tax for Alberta makes a compelling case for the necessity of revenue stability which requires us to move away from our dependence on unpredictable natural resource rents. It is time for all of us in this province to have an adult conversation about what a sustainable fiscal future looks like. This book should be required reading for all of us who want to be part of that conversation.

Anne McLellan, P.C. O.C. AOD., former Deputy Prime Minister of Canada

An indispensable read for those of all political stripes contemplating Alberta’s future in a turbulent global economy.

Roger Gibbins, Former President, Canada West Foundation

A Sales Tax for Alberta engages and makes accessible the details that need to inform the fiscal policy debates that must occur surrounding a sales tax. Albertans cannot avoid and should not delay this and need to be informed on the issues. This collection is an excellent place to start and is a great resource for the process that is coming. I commend the authors and editor and recommend this book to all Albertans.

Carman R. McNary, Q.C.

This book helps set the stage for a much-needed dialogue about why a sales tax is needed now more than ever and how such a tax could and should be implemented. Ascah and his contributors write compellingly on this very important topic.

Robert Bhatia, former Alberta Deputy Finance Minister

The contributors to this book explore all the important arguments that can be used to jumpstart a long-overdue discussion on Alberta’s ballooning fiscal deficit. Using his own experience and years of research, with insights from many experts from the top levels of government and academia, Ascah paints a complete picture of the problem and points the way to a solution.

Hilliard MacBeth, author of When the Bubble Bursts

About the Editor

Robert L. Ascah was the director of the Institute for Public Economics at the University of Alberta. Previously, he worked at Alberta Treasury Branches and was responsible for government relations, strategic planning, and economic research. He is the author of Politics and Public Debt: The Dominion, the Banks and Alberta’s Social Credit. His blog is abpolecon.ca.

Contributors: Ergete Ferede, Ian Glassford, Trevor Harrison, Kenneth J. McKenzie, Melville McMillan, Elizabeth Smythe, Kevin Taft, Graham Thomson.

Table of Contents

1. List of Figures and Tables
2. List of Selected Abbreviations
3. Foreword / Kevin Taft
4. Acknowledgements
5. Introduction
6. Part I. No Sales Tax! Alberta’s Political and Fiscal Environment
   1. 1. Alberta Exceptionalism and Taxation as Affront / Robert L. Ascah
   2. 2. The Political Suicide Tax? / Graham Thomson
   3. 3. Alberta’s Fiscal Dilemma / Robert L. Ascah
   4. 4. The Revenue Push and Spending Pull: A Double-Edged Look at the Source of Alberta’s Fiscal Ills / Robert L. Ascah
7. Part II. The Least Painful Solution: Why a Sales Tax Makes Sense
   1. 5. Alberta Sales Tax: An Inevitability and an Opportunity to Reset / Melville McMillan
   2. 6. The Volatility of Alberta’s Tax Bases: Implications for Tax Policy Choices / Ergete Ferede
   3. 7. Oil, Democracy, and Social Solidarity: The Case for an Alberta Sales Tax / Elizabeth Smythe
8. Part III. Suggestions for the Future: How to Get a Sales Tax for Alberta<
   1. 8. A Disciplined PST / Ian Glassford
   2. 9. Join the Sales Tax Parade! PST and the Road to Alberta’s Economic Recovery / Kenneth J. McKenzie
   3. 10. Moving to a Sustainable Fiscal Future: Addressing Alberta’s Legacies of Denial / Robert L. Ascah
9. Afterword / Trevor W. Harrison
10. List of Contributors

This work is licensed under a Creative Commons License (CC BY-NC-ND 4.0). It may be reproduced for non-commercial purposes, provided that the original author is credited.