Here’s some interesting math for you.
Between 2011 and 2014, Alberta Premier Jim Prentice was a Vice-President for CIBC, with a salary “reportedly over $2 million.”
In Ontario, his 2013 provincial income taxes would have been calculated using a progressively increasing tax rate that topped out at 13.16% on income over $509,000. The provincial tax deducted from his salary would have been $249,311.
But, because he lived in Alberta (I assume) he would have filed his taxes at the Alberta flat rate of 10% on his income over $17,593. His total 2013 provincial tax bill would thus amount to $198,241.
Put this together and it looks like Jim Prentice’s 2013 tax return because of Alberta’s flat tax (ignoring other deductions that I’m sure existed) amounted to $51,070.
Essentially, just enough for him to afford his recently purchased $54,000 1956 Ford Thunderbird.
I don’t begrudge anyone for what they spend their own money on, but the optics and timing on this purchase is bad. It will also serve as a reminder to Albertans that while some people are being told their salaries are not sustainable, others are benefitting from an excessively generous tax break.