Quote:
Originally Posted by PeteMoss
Businesses - like most people - don't like unknowns. Once this review is done and the world doesn't end for these companies - everything will return to as it would be given the current economic environment for these companies.
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Actually, this will not occur because in addition to the royalty review which has stalled new oil & gas investment in Alberta and the carbon tax (which I'll agree rightly targets consumers rather than industry only), the government has already jacked corporate income tax by 20%. This is the single worst policy implemented by the NDP thus far and it is entirely ideological. There is no economic rationale for increasing the corporate rate; it provides only a short term increase in revenue as non-essential capital investment in future years will shift to provinces with more attractive tax regimes (BC, Ontario). Research has shown that corporate tax revenues to the government as a % of GDP tend to be immune to changes in corporate tax rates.
If the carbon tax plan was to be truly revenue neutral and offset be a decrease in corporate income tax,
as has been successfully implemented in BC, I would be on board with the plan.