WTI looks like it will open around $32 tomorrow (still a lot of time and that could change). But this is an absolute disaster for Alberta and Canada as a whole.
WTI looks like it will open around $32 tomorrow (still a lot of time and that could change). But this is an absolute disaster for Alberta and Canada as a whole.
At this point....whats one more?
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Canada's Federal Budget is going to go up in smoke, between their drunken spending, Corona and now this, Its a perfect storm of a probably exploding deficit.
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Canada's Federal Budget is going to go up in smoke, between their drunken spending, Corona and now this, Its a perfect storm of a probably exploding deficit.
Let's not pretend this is political though. The Alberta budget from so-called fiscal conservatives is up in smoke as well. They based theirs on $58 oil and growth for the next few years. That looks extremely unlikely at this point and were less than a month in.
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Canada's Federal Budget is going to go up in smoke, between their drunken spending, Corona and now this, Its a perfect storm of a probably exploding deficit.
They may have to borrow an extra 10 billion to address this, which will cost them 98 million in year one in interest costs, rising by about 1 million a year (with the interest rate on the borrowing being 0.00986 (just under one percent per annum)
West Texas Intermediate crude fell $9 US to $32 and international benchmark Brent fell $11 to $34.
It was the largest single-day drop since 1991.
"Roughly every dollar [per barrel] is about $350 million to the government … We're talking about a $7 billion decline in revenue expectations," he said.
Introduce a 5cent/litre provincial gas tax increase
Cancel plans for further corporate tax cuts
Work with the feds to Introduce a 5cent/litre federal gas tax increase, with revenues to oil-economy regions to soften revenue shocks
Prepare for short term financing and other measures to keep some firms afloat.
Medium term - dedicate provincial and federal revenue to targeted diversification efforts.
Avoid big public sector cuts, which would undermine diversification efforts and would themselves cause further unemployment challenges.
Have large scale infrastructure stimulus that will have economic impact and have utility in diversification.
Yup drive more people into bankruptcy and out of the middle class to lower class while continuing to spend a deficit on the operating budget. Brilliant. Your plan would reduce individual spending making things even worse economically and probably increase operating and spending budget deficits.
Yup increase taxes on individuals, increase taxes on everyone and what profit. And You have to be careful on this whole thought that infrastructure stimulus is going to do anything, as its becoming impossible to build anything in the current regulatory environment and nobody is going to invest in it under your plan.
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Was talking to a family member tonight that works for one of the big players downtown. It sounds like things were already heading down to bad and have now moved to ugly.
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Yup drive more people into bankruptcy and out of the middle class to lower class while continuing to spend a deficit on the operating budget. Brilliant. Your plan would reduce individual spending making things even worse economically and probably increase operating and spending budget deficits.
Yup increase taxes on individuals, increase taxes on everyone and what profit. And You have to be careful on this whole thought that infrastructure stimulus is going to do anything, as its becoming impossible to build anything in the current regulatory environment and nobody is going to invest in it under your plan.
Amazing that every other province can handle their higher tax levels without unprecedented economic collapse.
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So your plan, on the eve of a pending economic meltdown, is to increase taxes?
Yes. We need a more diverse revenue mix. Gasoline prices will drop, so the overall impact to the consumer here would be negligible compared to what they’ve been paying in recent years. As per HST, still a lower overall tax burden than every other jurisdiction.
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Last edited by Bunk; 03-08-2020 at 08:35 PM.
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Yeah, with a over 7% unemployment rate, and with a massively depopulated downtown, you're plan will do a great job of protecting public sector unions and send more people to unemployment period.
Driving up a tax ration at this point is only going to increase unemployment and create and even more unaffordable public sector payroll role.
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