'Physician, heal thyself': Kenney slams Nenshi's past criticism of UCP corporate tax plan
Calgary's mayor said during provincial election campaign that no party had good economic plan for city
Alberta Premier Jason Kenney slammed Calgary Mayor Naheed Nenshi's criticism of his party's plan to cut the corporate tax rate during the election campaign.
During the campaign, Nenshi called on all parties for more robust economic plans to spur business growth in Calgary.
However, on Monday, Kenney called efforts Nenshi has supported, like the Opportunity Calgary Investment Fund, "corporate welfare" that hand-picks "small numbers of winners and losers."
"We have to do things in the immediate short-term and that's where I really saw things lacking," Nenshi told Power and Politics the day before the United Conservative Party was elected.
"Those jobs may be created by corporate tax cuts but you have to bring those businesses here, you have to sell them on Calgary, you have to help expand them — you have to fill the talent gap we have."
Kenney disputed those comments during a Monday scrum.
"I guess I would say to the mayor, 'Physician, heal thyself.' Instead of complaining about a provincial policy that will make Alberta the most attractive place in which to do business, how about trying to listen to businesses that are being crushed by an ever-growing property tax burden," Kenney said.
It's a provincial tax and the province needs to take some responsibility here.- Mayor Naheed Nenshi
The new premier argues the corporate tax cut would grow the Alberta economy and create 55,000 jobs.
In the lead-up to the election, the City of Calgary surveyed Alberta political parties and their economic strategies for Calgary. Based on those results, Nenshi then criticized all parties for not having what he considers to be practical solutions to Calgary's economic challenges.
The city of 1.2 million people has the highest unemployment rate of large Canadian centres, outside of Atlantic Canada. Businesses are facing high property tax increases and downtown office vacancy rates remain high.
Nenshi said those struggling to make ends meet need help now — not when jobs are created down the road. He noted the city has offered nearly $150 million in tax breaks and grants for small businesses facing high property tax bills.
"The city is the order of government with the least ability to help here. But we're the ones that put up money towards a venture fund, we're the ones that try to find tax breaks and grants for those small businesses, even though 40 per cent of that property tax goes to the province. So I'm feeling a bit isolated here," Nenshi said.
"It's really easy to say, well, the city should fix this, but in fact, it's a provincial tax and the province needs to take some responsibility here."
Corporate tax will drop to 8% by 2022: Kenney
Kenney announced Monday how he would rollout the planned corporate tax cut.
By July 1, the tax will drop from 12 to 11 per cent, he told reporters in Edmonton. By Jan. 1, 2020, the tax would decrease to 10 per cent. By the end of Kenney's term in 2022, he promised the tax would drop to eight per cent.
He said he's spoken with business leaders who are "thrilled" with the plan.
"One of the reasons those downtown office towers were built in Calgary in the last 30 years was because of the movement of businesses, of headquarters, to Calgary to benefit from what were the lowest tax rates in Canada. It was the Alberta advantage," Kenney said. "And we need to get that advantage back in order to see investment and new companies locating back in Alberta.
Not all economists fully agree with Kenney's proposal. Economist Trevor Tombe has argued Alberta could be setting itself up for a revenue shortfall, unless the tax cuts come with spending cuts or new revenue sources, such as a sales tax.
With files from Tricia Lo, CBC's Power and Politics