The volatility of Alberta’s tax bases: Implications for tax policy choices

Ferede, Ergete
Faculty Advisor
government spending , taxes
Abstract (summary)
Over the last two decades, on average, the largest single source of revenue for Alberta’s government comes from non-renewable resources when oil and natural gas prices are high, while PIT and CIT provide the second and third major sources of revenue for the government. Resource-dependent economies such as Alberta rely heavily on resource revenue to fund their various public services and infrastructures. As a result, their budgets are often exposed to the vagaries of fluctuating world commodity prices. Previous analyses of Alberta’s resource revenue volatility focus on finding ways to reduce the volatility of this type of revenue (Landon and Smith 2010). This chapter focusses instead on the crucial role that taxes can and do play in providing stability for government budget planning. Such a study is crucial for Alberta in particular, given its current economic and fiscal prospects.
Publication Information
Ferede, E. (2022). “The volatility of Alberta’s tax bases: Implications for tax policy choices.” In R. L. Ascah (Ed.), A sales tax for Alberta: Why and how (pp. 111-125). Athabasca University Press.
Item Type
Book Chapter
Attribution-NonCommercial-NoDerivs (CC BY-NC-ND)