Quote:
Originally Posted by MarchHare
I think what Clay is trying to say is that provincial revenue from royalties should map easily to a Laffer curve. If the government sets the rate too high, they're disincentiving production and total revenues go down. On the other hand, if the rate is too low, Albertans are leaving money on the table from our one-time non-renewable resource. Are rates currently set at the level where the citizens of Alberta receive the maximum return from our resource? I honestly don't know, but that's certainly a discussion worth having.
|
Good thing we have actual results from the last royalty hike to prove that we're currently at the point where hikes actually result in lower revenue and investment. It's a less relevant discussion to this election that it was in the last one as a result of what we've learned from the recent failed policy.