Quote:
Originally Posted by Rerun
Correct me if I'm wrong but government obtain revenue from two scources... taxes and resources.
Now I'm not an accountant but I assume you determine your tax rate after determining what your resource revenue will be. By deliberately low balling your resource revenue figure you are left with taxing your citizens at a higher rate than necessary in order to meet your budget predictions.
Thats not right. Use a reasonable figure (not a worse case scenario figure) in your resource revenue prediction and taxes will be lower thereby attracting investors and entrepreneurs to this province thereby adding to the tax base for when resource $$$ begin to decrease due to scarcity of the said resource.
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The current government does exactly that. Hugely overestimates future commodity revenue to claim they have a 'balanced budget' and don't need to raise taxes. And this was before the multi-billion dollar campaign pledges. But there's no way their revenue estimates will be anywhere near actual.
Everyone and their dog knows that the only real options left to the Redford PC's are more deficits or tax increases.