Quote:
Originally Posted by Slava
This has to be the only site in the free world where the tax reductions/redistribution of where they are collected matters. Because the red party proposed it and not the blue this is horrible?
How do you figure that the economy goes into recession based on this tax? If the oil industry is as bullet-proof as everyone implies than surely they will have no issue with this.
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You do understand this is not just a tax on oil companies right? I mean... you get that don't you?
The price of virtually everything is going to go up. No, this isn't a tax on tomatoes per say, but the cost to produce those tomatoes, to harvest them, to ship them to market... is going to go up. The cost for Sobey's to keep the lights on is going to go up. Their cost to keep the freezers cold is going to go up. Do you think Sobey's is going to absorb those costs out of some green altruistic nature? I can tell you... they won't. They'll increase the price of the goods they sell to keep their profit margins the same. If they are greedy (good thing there are no greedy people in the world), they might even tack on a little bit to the profit margin because people will be expecting a price increase, so why not add an extra 1 or 2% for the profit bump. Of course, if we weren't talking about tomatoes, the GST would be up too, because the cost would be up.
Now, do you think employers are going to increase everyone's salary to offset these increases so that Joe Employee isn't as affected?
Do you believe that the 1% tax cut is going to offset all these costs?
Less money to spend in disposable income + more expensive everything = recession.