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Originally Posted by Locke
I keep hearing this, but theres so much wrong with it still.
First of all, for all of the Pro-PST individuals I understand that its not the worst idea in the world, but theres also a reason it isnt here and that reason isnt just 'Political Suicide' or 'Sheer Hubris.'
PST isnt some sort of 'Magic Bullet.' Everyone screaming at the top of their lungs for PST seemingly has little understanding of its actual overall impact and a perfect example of that is the argument:
"If we had a PST we'd be out of debt right now!!!"
Because thats how Economics works right? You change one variable to produce a favourable result and all other factors concerning that variable will stay exactly the same. Nobody will make different decisions based on new circumstances. Its just 5% straight into our pockets that our Government will spend wisely on Teachers and Hospitals!!
Right? Thats how that works?
Yeah....I'm getting that impression about a lot of people and there are a few right at the top of the list....some of the most vocal actually.
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Well Locke, I'll trust that Trevor Tombe has at least a little understanding of Economics given that he's well, an Economist.
https://twitter.com/user/status/1233448126838521856
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Originally Posted by Trevor Tombe
Even when (if?) we balance the books in 2022, a massive revenue challenge will remain. We will rely on over $8.5 billion in volatile resource revenues. This, more than anything else, is Alberta's budget challenge. Addressing it won't be easy.
Do you want your taxes to rise and fall by thousands of dollars from one year to the next?
Do you want public services to similarly rise and fall by billions?
Do you want to use public debt to absorb the shocks and smooth out good times and bad?
Currently in Alberta, those are your options.
It's fair enough to pick one, but we need to be open and honest about the choice that we're making. That's not what Budget 2020 does. It's a budget in denial of reality.
Many will debate and discuss the pros and cons of tax changes and spending restraint contained in Alberta's latest budget. Such discussion is valuable and healthy.
But regardless of whether you want low spending or high, or higher taxes or not, there's a problem that needs fixing: our reliance on oil and gas revenues.
I don't doubt the government's resolve to eliminate the deficit by 2022. But Budget 2020 presented no credible plan to get there. Something will have to change, unless pure luck intervenes.
Pretending a problem does not exist doesn't make it so.
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https://twitter.com/user/status/1233157226640003072