Quote:
Originally Posted by SebC
More tax on past profit doesn't make that profit a loss.
|
Yes, hence the melodrama. And of course oil prices have more impact on CNQ than anything. But what this shows me is that people who say things like, "If your business can't withstand small increases like 20% on your tax bill, or like 50% on your minimum wage, you have a terrible business model" are totally ignorant of reality. CNQ is by all consensus a very well run business. Deferring your tax liability and using your capital to generate more income is one of the things people do to create a good business. Here's what good companies will do to remain "good" in this environment. They will cut spending, cut investment, cut jobs, cut expenses, cut dividends, move to more profitable surroundings, close. So now people who say businesses should be able to withstand small increases are actually correct. They just haven't thought about how they will do it.