[mrkajz44]

The issue with raising corporate tax rates is companies will respond to a large raise.

If the rate goes up a percentage point or two (at most), then the behaviour response is probably pretty low - most companies will stay in Alberta and pay slightly higher taxes.

However, if you make a bigger jump than that, companies will look to relocate to other provinces - while not the easiest thing to do, it is possible to move your provincial residency without really changing your business operations.

Currently, Alberta's 10% rate is not far off from other provincies - if you jump that to 14 or 15%, then suddendly we are not very competative anymore and companies will look to move to avoid taxes.

Always think about the behaviour response when raising taxes. No way we raise the rate by 40 or 50% (going from 10% to 14 or 15%) and business just say "Sure! We'll just pay a ton more tax and not think about moving elsewhere!"