Quote:
Originally Posted by Cowboy89
Tax cuts will not offset the lower income that people will be making in this province after the carbon tax lowers netbacks at many of our province's employers who provide high income jobs. The corporate tax breaks will do nothing for emerging companies that do not pay tax as they do not make taxible income yet. The carbon tax proposal does nothing to help them because they will have a higher cost base without any 'savings'. Just like a balanced budget in of itself doesn't necessarily indicate the best use of capital (as you can have a high taxing and high spending regime), a "revenue neutral" tax doesn't necessarily mean the net effect on people will be zero or even close to it. Ultimately what it will work out to is less income, higher costs, but we get a token tax savings that doesn't make up the difference of both.
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Maybe I'm missing the point here, but now it seems like the argument is the other side of the coin from the initial argument? You can't argue it both ways really; either the corporations are passing along the taxes (which everyone thinks that they will), or the corporations will not make enough money. If the corporations pass this along to consumers then really there is no hit to their income to begin with, and coupled with the lower taxes their income actually rises!
As far as small/emerging corporations, they are always facing the reality of not enough income to meet operating expenses. Its a peril of the markets.