Jim Prentice reverses cut to charitable tax credit
WATCH ABOVE: Jim Prentice has changed his mind on at least one controversial piece of his provincial budget: the charitable tax credit cut.
EDMONTON — Alberta Progressive Conservative leader Jim Prentice is reversing a decision to slash the charitable donation tax credit.
March’s provincial budget saw the Tories cut the tax credit from 21 per cent to 12.75 per cent on donations of more than $200. It was estimated the move would save $90 million annually.
However, the decision raised concerns with charities about how the cut would impact fundraising.
Prentice said Tuesday the government was wrong.
Speaking at an event in Calgary, he said the choice was “more than simply unpopular” and the cut will be reversed.
“I’ve said during this campaign that leadership is about difficult and sometimes unpopular choices,” Prentice said.
“But hearing from Albertans during this campaign, it’s become clear that this choice was more than simply unpopular.
“Rather, Albertans have told me it was seen as contrary to our values as Albertans – values of generosity, community, and looking out for one another,” he added.
“These are the leaders who manage your charitable dollars to deliver critical services and cultural excellence. These are the people we turn to, to help build and support our communities and we cannot tolerate even the impression that we might put that in jeopardy.”
Opposition leaders applauded Prentice’s move as the right thing to do. But Liberal Leader David Swann said it reflects a “flip-flop” Progressive Conservative party now tailoring policy on the fly to
suit election polling.
“(It’s) a government that really can’t be trusted to follow through on what it says it’s doing,” said Swann.
Prentice said the decision to scrap the cut will not affect his government’s timeline to balance the budget.
He added he doesn’t see any other part of his government’s fiscal plan that he would be willing to reconsider.
With files from The Canadian Press
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