Quote:
Originally Posted by belsarius
I am not arguing that the additional costs will make an impact but in response to the question of how much, I would guess it's closer to 10% than 50%. Minimum wage hikes are proven to have a negligible effect on employment, corporate tax rates have no correlation to economic growth. The carbon tax absolutely is the biggest deterrent and most damaging short term policy, but in the longer run it helps give Alberta the social license it's been lacking.
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I seriously disagree with all of that. If you look at the last year in Seattle the initial increase in minimum wage resulted in about a net of .70 cents an hour and the economy in Seattle is booming off the charts. Corporate tax is always a top three reason when locating a business. And social license is just laughable.
I moved a perfectly good business from Calgary to BC on July 1. If you blend up all the reasons the bottom line is I can make more money here now. Corporate tax is less, minimum wage is less, there is less uncertainty with provincial policies. All those reasons make people here more willing and able to spend money
Government debt is a long term factor in creating new business. There is no doubt it costs more to live and work in places with higher debt.