Quote:
Originally Posted by First Lady
Then you should understand that the less business they conduct in AB, the less benefit the residents will receive. Increasing the slice of the pie doesn't make an difference if you have shrunk the size of the pie.
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Let's look at it this way - oil companies are operating in the black. The government just wants to take some of that "black" and give it back to the people of Alberta in the form of provincial funding. This would be like the government taxing disposable income on individuals - there's still going to be disposable income, just not as much of it, and ultimately comes back in the form of better services for the taxpayer to use.
Royalties would be a horrible idea if these oil companies were operating in the red, which they are far, FAR from it.
I think you can see that even if the pie "shrinks," the point is there is still enough pie for everyone to enjoy, even during recessionary times.