Quote:
Originally Posted by Hockeyguy15
So just reviewing the royalties will cost us jobs? Even if they don't change anything at this time?
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There is some merit to that argument.
Corporations like stability, particularly when investing millions (billions) of dollars. If the tax regime is constantly changing, they're less eager to invest in Alberta, versus another jurisdiction, since there is uncertainty as to whether the returns that have been budgeted out will change half way through the 5-10 year program, potentially rendering the project unfeasible after money has been invested. Sure, Alberta is a lot safer, more technologically advanced and has more educated labour than say, Nigeria or Albania, and the government is much more stable, but the costs of doing business are comparatively astronomical.
As mentioned before, Alberta is ideal for foreign investment only when there is a balance between taxation, regulation, labour costs and profits. Frequently challenging that balance (even if nothing changes) may scare off some investment to another producing jurisdiction, rightly or wrongly.
Less investment = less jobs.