Quote:
Originally Posted by GP_Matt
Reducing taxes doesn't help though if the revenue is the result of high resource prices. If you reduce taxes when there is a lot of money coming in you then have to raise taxes as the price drops. Using corporate taxes as an example an oil company would pay a lower tax rate when they were making more money and their tax rate would go up when their margins are shrinking.
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You are assuming that the price of oil and natural gas, which is the primary resource revenue in Alberta, is going to drop significantly. Highly unlikely.