Quote:
Originally Posted by Cappy
I would take issue with the way this Gov't has gone about increasing revenue. Carbon tax, whatever they are inevitable.
Corporate taxes are the most inefficient form of taxation and when trying to diversify the economy, probably not the best solution with lower rates in BC and Sask. Income taxes are more efficient than Corp. taxes but not by much. Sales taxes are one of the most efficient tax forms out there and Alberta should be utilizing them - it's really a shame that people cannot look past some misconceived notion that PST = failure.
Also, if you think this Province needs to curb its reliance on royalties, then you need to "look in the mirror" as well and determine how we can cut 40-60 billion. We are basically running on limited royalties as we speak and its clear that we have a spending problem in this Province (as is clear in almost every province and Fed) and things NEED to be cut.
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I agree with what you are saying though you are kind of goldiloxing the corporate tax rate. I think the argument to lower corporate taxes is much like funding arena's to keep an NHL team. When every jurisdiction is cutting rates you have to do it but everyone would be better off with marginally higher rates. Its only recently that tax rates were lower than 12% and are big head office acquisitions occurred when corporate rates were 11.5% and higher.
I fully agree with a PST being added, wage freezing in public sector jobs, elimination of defined benefit pensions.
The problem though is that a right wing party won't raise taxes and a left wing party won't cut jobs. So how do you wean yourself of oil when both are required.