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Originally Posted by rubecube
Obviously there's more to it than that but if you're going into business with a model that can only survive on a tax rate that isn't high enough to support the infrastructure and services your business makes use of, is it truly a viable business? In other words is there enough of a demand for your product to justify your business' existence and the resources it uses?
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You're not really getting small business. If you own a restaurant it might still be profitable at a slightly higher tax rate. But is it profitable enough. If you can make 60k a year as a chef, why own your own restaurant if you're only netting 80k. The risk you're taking, as well as capital you're using and risking isn't worth the extra 20k. The 2% more you're paying in tax is a big deal for small businesses more so than large.
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Right but that could also be partially due to personal income taxes and costs of living are being much higher in Norway than they are in Alberta. I'm not saying they're direct comparables and there are obviously different hurdles in Alberta than there are in Norway but I think they have probably managed their resources better over the long run
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Definitely. It's impossible to compare directly but the numbers are very very different for the two countries and I think the different ways we have developed oil and gas is a big part of that.