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Originally Posted by Makarov
By all means, provide a source that you think is more current and more accurate. None of the posters decrying Alberta's rapid decent into Soviet economic collapse have done so so far.
Even this sketchy report ( https://www.fraserinstitute.org/arti...ly-set-to-grow) from the Fraser Institute (yuck) has to bend over backwards to come to the conclusion that Alberta's tax burden may, in 2017, be only second lowest (to Saskatchewan). Oh the humanity! |
The real concern is the direction we're heading. We might be middle of the pack as far as corporate taxes go. But it doesn't take much to stop investment money flowing into Alberta...
http://www.macleans.ca/economy/econo...-ndp-tax-plan/
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The issue of tax leakage—companies and high earners adjusting their financial affairs and accounting entries to shift money out of higher-tax jurisdictions—must be considered. Moreover, at the provincial level this concern is heightened, as firms or individuals operating in several provinces have greater ease to shift taxable income across provincial borders than national borders. Alberta, being a low-tax jurisdiction within the federation, has been the recipient and beneficiary of much of these interprovincial tax shifts up to now. I don’t expect Albertans to start shifting their own money out of the province, but I do expect the inflow from other provinces to slow to a trickle since the tax differential will no longer be as large. Tax leakage is not an all-or-nothing thing; not everyone has the ability to shift income and most firms have only a limited scope for shifting. But it doesn’t take much shifting for it to matter. A quick example shows why.
Imagine there is $6 of corporate income being taxed at 10 per cent, for a tax revenue haul of 60 cents. If the tax rate goes up to 12 per cent, it only takes $1 of those $6 being shifted out of Alberta for the tax change to yield no net increase in revenue. ($5 times 12 per cent leaves you with the same 60 cents of tax revenue you started with.) The reason? When a dollar is shifted away, you lose the whole 12 per cent, and it takes a lot of dollars to stick around to pay the incremental two per cent to make up the difference. The best evidence suggests that provincial corporate taxation in Canada is quite susceptible to income shifting and tax leakage
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The other direction we're heading is the most debt in the entire country second only to Ontario which has the highest debt in the whole freaking sub sovereign world. Who's going to invest in that? You have to be a knuckle head to enjoy our current status as "one of the lowest tax burdens in Canada".