As we look at the current economic situation in Alberta, virtually all of the economic policies that the NDP have brought into effect in Alberta have raised the costs of doing business in Alberta. They have raised corporate taxes, introduced their surprise carbon tax, raised the cost of labour via the minimum wage increase, there are the burdensome regulatory hurdles of advancing a project, and the list goes on. We need to end this trend.
There is a crucial and immediate need to bring investment back to Alberta, instead of watching capital flee Alberta, let's encourage investors to come back and invest here. We need to Energize Alberta and let the international and Canadian investment community know that Alberta is open for business.
Both of my first 2 Big Ideas need investment to see them succeed so today's announcement is about bringing investment back to Alberta.
My third big Idea is called the Alberta Capital Income Security: ACIS for short. This is a made in Alberta investment security that has tax advantages for individuals, investors, and corporations that is designed to attract investment into any sector of Alberta for capital and research and development.
The goals of this Big Idea are the following:
1. To invest in capital projects or R&D in Alberta regardless of the sector
2. To lower the cost of capital for Alberta business;
3. Create an interest deduction on a federal and Provincial basis for corporations
4. As a term debt structure this removes the vagaries of bank lines being moved up and down that many businesses in Alberta have succumbed to over the past couple years.
For investors, they will receive interest income tax free from this investment and if they sell it they won’t pay capital gains tax on their Provincial Income Taxes. This means they have to be an Alberta taxpayer whether they are an individual or a financial investor.
This plan creates a new type of investment for Alberta companies to issue. Similar to a flow-through share in the mining world, this new share is designed to provide an incentive for financing capital projects and research and development.
After consulting with many industry experts I am confident this new class of security will provide a new incentive for investors to come back to Alberta - not just for oil and gas but any industry. Although I expect energy that to remain our primary product, I hope that new and growing industries will take advantage of this new investment option to move to or invest in Alberta.
Alberta has had far too many major investors passing over Alberta or selling out. In conjunction with getting our tax levels and regulatory structure simplified I am confident this will attract capital back to Alberta.