Alberta premier Jim Prentice reversed a reduction in the province’s tax credit for charitable donations April 21 as the provincial election campaign rolled on.
The Progressive Conservative government had reduced the tax credit to 12.75 percent from 21 percent in the March budget for donations of more than $200. The move was intended to save the province $90 million.
However, Prentice said on the campaign trail that Albertans had repeatedly voiced objections to the move, which could have reduced the amount of donations to charities in rural and urban Alberta.
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Prentice said the party had “gotten one very important thing wrong in our budget proposal” and said he would “fix that.”
Brad Tennant, spokesperson for Albertans4Giving, said the group’s website objecting to the tax credit reduction had gathered more than 4,000 signatures by April 21.
“I’m pretty elated that Alberta will be keeping the tax credit that helps Albertans be known as the most generous province in Canada,” Tennant said moments after hearing news of the reversal.
“I was definitely elated when I saw it. Really, really, really, happy but disappointed on one hand that we have a government with a caucus of 70 individuals and none of them could point out that this was wrong.”
The Wildrose party made political hay from the change in PC plans.
“The reality is, Albertans can’t trust the PCs after an election to not hurt charities or to keep any of their promises,” said Wildrose leader Brian Jean in a news release.
New Democrats have been emphasizing the need for increases to corporate taxes.
Tennant said the tax credit reduction would have had consequences.
“While not all charitable giving is because of the tax receipt, I think that it’s fair to say that some people do consider that and perhaps give larger donations,” he said.
“On top of that, in a hurting economy like we’re in right now, taking money away from donors would have been disastrous for the non-profit sector.”
A 2011 study by the Fraser Institute showed Albertans led all other provinces in the average donation amount, at $2,289. British Columbia ranked second at $1,832, followed in descending order by Manitoba, Ontario, Nunavut and Saskatchewan.
Contact barb.glen@producer.com
