If Alberta Elects The NDP, We Too Will Become A Have Not Province

[Anonymous]

Alberta has been the economic juggernaut of Canada for over 2 decades now. We enjoy the lowest tax rates, the highest wages and as a result the highest levels of disposable income. Even in our current economic downturn we are still have one of the lowest unemployment rates and we are growing our population.



Provinces like Saskatchewan and Manitoba that have elected NDP governments experience interprovincial migration losses of their best and brightest. Since Saskatchewan first elected Brad Wall's Saskatchewan Party the brain drain has been reversed and that province has been the beneficiary of the inmcompetance of neighbouring Manitoba's NDP government. Alberta is the only Western province that has never elected a No Development Party(NDP) government and as a result we have always been the main recipient of those fleeing NDP wastelands for better opportunities.



If you want someone who will not champion Alberta's energy industry vote for this twat. If you want someone who will kill jobs by raising corporate taxes vote for this twat. If you want someone who will drive away investment to neighbouring pro-business Saskatchewan vote for this twat. If you want someone who will take disposable income out of your pocket by raising your taxes vote for this human bloodclot.

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[Anonymous]

Economists say that a 1% increase in corporate taxes means a loss of 9000 Alberta jobs. Nothead's plan will kill 18,000 jobs.

EDMONTON: Analysis released today by the Alberta Enterprise Group (AEG), a not-for-profit business advocacy organization representing businesses in all sectors of the economy, shows increasing business taxes would kill jobs and investment, increase consumer prices and reduce wages for workers.



The report, which draws from a wide range of peer-reviewed research and commissioned studies, makes the case that Alberta's existing business tax structure has paid enormous dividends for all Albertans – who have benefited from the fastest-growing economy in Canada.



Albertans have prospered under current business tax structure

Between 2004 and 2013, total private sector business investment in Canada amounted to $1.6 trillion. Of that, $535 billion flowed into Alberta, Ontario at $410 billion, Quebec $227 billion and British Columbia $183 billion.



In percentage terms, Alberta attracted 33.4 percent of that $1.6 trillion in investment, while Ontario received 25.6 percent, Quebec 14.1 percent and British Columbia's was 11.4 percent.



Of note, between 2004 and 2013, Alberta created 404,000 full-time jobs – more than Ontario's 401,000 jobs —a province with over three times Alberta's population. "Alberta's economic success over the last decade has been no accident," said AEG Vice President David MacLean. "Our competitive business tax environment has resulted in higher wages, more plentiful job opportunities and an historic level of investment. When you contrast that with British Columbia, where investment dropped after they raised business taxes, it's clear Albertans should stay the course."



Governments of all partisan stripes have reduced business taxes

AEG argues that Albertans should not accept the myth that higher business taxes are cost-free for citizens, pointing out that governments of every partisan stripe began to reduce corporate tax rates in Canada, beginning in the late 1990s: Federal Liberals, the Saskatchewan NDP and Alberta's Progressive Conservatives.



A landmark study by the Liberal federal government in 1998 found that, as a result of internationally non-competitive tax rates, Canada's corporate income tax base was being eroded. The federal Liberal government then acted to reduce and reform federal business taxes. Provincially, a 2005 report by the New Democratic Party government of Saskatchewan resulted in that province making the most significant business tax reductions in its history. In Alberta, the Business Tax Review Committee, commissioned by the Progressive Conservative government, found in 2000 that the combination of federal and Alberta business taxes were higher than international competitors like the United Kingdom, France and Australia. The government responded with a commitment to reduce them.



"Time and again, the research has shown that high business taxes kill investment and jobs," said MacLean. "Governments around the world are cutting business taxes, not increasing them. Economist Jack Mintz has pointed out that, ?for each dollar raised from increased corporate taxes, the Alberta economy loses $82."



Budget challenges need to be addressed, but business tax hikes not the solution

The AEG study acknowledges the serious budget challenges facing the government, but urges the province to look at expenditures, in conjunction with the significant tax increases proposed in the 2015 budget, to close the budget gap. Further tax increases — particularly on business – would only harm Alberta's competitiveness, reduce investment and ultimately result in job losses.

http://albertaenterprisegroup.com/study-alberta-government-should-hold-the-line-on-business-taxes/?utm_source=rss&utm_medium=rss&utm_campaign=study-alberta-government-should-hold-the-line-on-business-taxes">http://albertaenterprisegroup.com/study ... ness-taxes">http://albertaenterprisegroup.com/study-alberta-government-should-hold-the-line-on-business-taxes/?utm_source=rss&utm_medium=rss&utm_campaign=study-alberta-government-should-hold-the-line-on-business-taxes

[Romero]

Don't vote NDP! You don't want to miss out on those $5 billion deficits!

[Anonymous]

Don't vote NDP! You don't want to miss out on those $5 billion deficits!

You're right, they will become $10-15 billion after they kill jobs with higher taxes.

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[Anonymous]

NDP lead Manitoba has the highest taxes West of Quebec and yet continues to produce higher and higher deficits. Notley wants to bring the same losing formula to Alberta. ac_rollseyes

The Manitoba government has announced a higher-than-expected deficit, raising more questions about its promise to balance its books by 2016.

The province's second-quarter update says the deficit for the fiscal year that ends in March is now forecast to be $402 million -- $45 million higher than set out in the spring budget.

The NDP has been running deficits since 2009 and originally promised to be back in the black by 2014-15. Two years ago, the target was pushed back to 2016-17. On Friday, even that target seemed flexible.

"It's our goal to do so, but we're not going to do it if it means cutting health care or front-line services," Finance Minister Greg Dewar said.

"I've had a chance to meet with people ... at budget consultation meetings and at town halls, and they have reinforced with me that our government should continue to focus on providing services for families and ... making sure we have a strong health-care system --and that's what we're doing."

The update also revealed that for the second year in a row, the government is not spending all of the money raised by last year's provincial sales tax increase on infrastructure. After raising the tax to eight per cent from seven, the NDP promised to spend every cent on roads, bridges, flood-fighting measures and other core infrastructure projects.

http://winnipeg.ctvnews.ca/manitoba-government-projecting-higher-deficit-than-expected-due-to-more-spending-1.2145140">http://winnipeg.ctvnews.ca/manitoba-gov ... -1.2145140">http://winnipeg.ctvnews.ca/manitoba-government-projecting-higher-deficit-than-expected-due-to-more-spending-1.2145140

[Romero]

So Manitoba's deficit will be $402 million while Alberta's deficit is $5 billion. I'm not understanding why a $402 million deficit is worse than a $5 billion deficit.

[Anonymous]

So Manitoba's deficit will be $402 million while Alberta's deficit is $5 billion. I'm not understanding why a $402 million deficit is worse than a $5 billion deficit.

Why is Manitoba with 1/4 of Alberta's population, sky high taxes and not "addicted to oil" running deficits in the first place? According to Rachel Notley, high business taxes are good for the bottom line.

[Anonymous]

Alberta I in the best financial shape of any province in Canada. Their problems are only temporary. Ontario's problems are structural which is why we are more than a decade into our slump.



The resource rich provinces are doing better than the traditional manufacturing provinces. I cannot see Alberta ever becoming a have not province like Ontario has. Even if the NDP is elected and does damage to the economy I don't see any scenario where Alberta will follow Ontario down the drain.



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[Romero]

Primed for Change: Alberta Voters Flock to NDP



Corporate-friendly spring budget was final straw for angry electorate.



While NDP support in Alberta is strongest in Edmonton, which has a more progressive electorate, polls show the party's popularity is rising across the province. There is widespread talk that the New Democrats may contribute to the creation of Alberta's first minority government. Last week, a Forum poll even suggested the NDP could form a majority.



Hoffman, the NDP candidate, said she has noted a sea change in attitudes toward the party. For example, supporters need little convincing to accept NDP lawn signs. New Democrat campaign offices throughout Edmonton say they're struggling to keep up with sign requests. And seasoned New Democrat campaign workers say nabbing voters has never been so easy. Voters are even walking into campaign offices declaring their intent to go orange.



For some voters, the recent budget was the last straw. It called for new taxes and fees to increase revenue to fix a struggling oil economy. But those increases were aimed at individual Albertans -- not corporations.



Duncan Wojtaszek, who is director of political affairs for the Students' Association of MacEwan University, was unimpressed with Prentice's budget, especially when the premier justified service cuts by urging Albertans to "look in the mirror" to find the source of the province's economic problems. Wojtaszek was incensed.



"To look at a mirror? Trust me, this isn't my fault," he says. "You can sell me on a problem and that you've got a solution, but to tell me it's my fault, that's not going to fly."



The budget Prentice delivered, which included no corporate tax increases, gives the impression that corporate Calgary is untouchable, and their finances and bottom lines more important than regular Albertans.



http://thetyee.ca/News/2015/04/30/Alberta-Voters-NDP/">//http://thetyee.ca/News/2015/04/30/Alberta-Voters-NDP/

[Anonymous]

That was laughable the way Nothead claimed that BC raising it's corporate tax rate had no negative affect. I guess in her world the loss of private investment would not have created jobs. ac_rollseyes



She does seem to acknowledge there is a connection between corporate tax rates and employment with her tax-credit proposal for hiring new workers.

With an Alberta election due May 5, all sorts of tax policy claims are being made. The most interesting one by the Alberta Federation of Labour is that recent British Columbian corporate tax increases yielded revenue and more jobs.



I am not sure what planet these claims come from but B.C. is no example of strong private investment or job creation. On April 1, 2013, B.C. raised the provincial corporate income tax rate from 10 to 11 per cent. On the same day, it also reversed its decision to harmonize its sales tax with federal GST, significantly increasing sales taxes on capital purchases to the order of 3.5 percentage points. B.C. now has the sixth-highest tax burden on capital investment among industrialized jurisdictions, rivalling only NDP's Manitoba as the least tax competitive economy in Canada.



So what did these tax increases do for the B.C. economy? Private investment has taken a nosedive in the province, dropping 3 per cent since 2012. In contrast, the rest of Canada saw an increase of 1.5 per cent. B.C. private sector employment did rise by 37,000 jobs over two years although B.C.'s employment as a share of the population is now below Quebec's at 58 per cent. Without investment B.C. won't grow as much – its per capita GDP in 2014 is below the national average, in contrast to two and half decades ago.



Of course, various factors affect investment besides taxation‎, including growth in demand for goods and services, interest rates and capital goods prices. Unfortunately, B.C. historically punches below its weight in attracting business investment. Even though B.C. accounts for 13 per cent of Canada's population, its share of Canadian private investment is 12 per cent.



B.C. did become more tax competitive during the previous decade when corporate tax reform led to lower rates, the elimination of capital taxes and sales tax reform. All that has been blown in 2013 with Christie Clark corporate tax increases, reversing promises made earlier when the "revenue-neutral" B.C. carbon tax and HST were adopted.



The proof will be in the pudding with promised LNG developments, which the B.C. government is counting on for growth now that it has finished tax-slapping the business sector. The economics are tough enough with falling Asian natural gas prices linked to oil prices, but even more difficult with B.C.'s penchant to grab revenues, knowing full well that producers will be squeezed. LNG plants are more expensive with provincial sales taxes on construction goods, higher corporate taxes and the new LNG tax.



If it wasn't for federal Finance Minister Joe Oliver rescuing the moment with faster depreciation write-offs for LNG, B.C. provincial tax hikes would have taken the gas out of LNG construction. Indeed, the worst aspect of federal tax policy was to distort the tax system further to accommodate bad provincial tax policy. The federal tax incentive may never get used and B.C. may not collect its bountiful taxes. Only time will tell.



So when Alberta Jim Prentice said he did not want to raise corporate taxes in his budget in face of a recession, he knew from B.C‎. experience that it would be ill-advised. His office asked about the impact on Alberta's economy of a point increase in the existing 25 per cent federal-provincial corporate rate. The answer, based on some earlier refereed work: It would cut corporate investment by $6 billion and private sector jobs by 8,900.



These are conservative effects. Most countries after the fall 2008 recession avoided raising corporate taxes precisely to encourage growth: Corporate tax rates on average have fallen to 24.4 per cent among 95 countries in 2014. There is a reason behind this. Study after study has shown that corporate taxes impose the highest economic cost. ‎For each dollar of corporate tax, the loss to the Alberta economy is $82. Not a good tradeoff.



Of course, the political reaction to Prentice's budget is that corporations are getting off free. This almost sounds reasonable except, as recent studies have shown, corporate taxes levied by small open economies like Alberta are largely shifted onto the immobile population through higher consumer prices or lower wages. This makes corporate tax hikes regressive, hitting hardest lower and middle income workers.



The power of corporate taxes is at least acknowledged by the NDP's Rachel Notley, who is proposing a corporate tax credit to reduce the cost of hiring new workers by 10 per cent, up to $50,000 in earnings. This age-old incentive has been proven to be rather ineffective. Both Canadian and U.S. studies have shown that new-hire tax credits result in existing workers being laid off to hire subsidized workers. Further, during the years in which the federal government used a similar program, few firms took it up because they were not aware of the program. I doubt the Alberta NDP proposal will create 27,000 jobs, which seems to be a forecast based on imaginary economics.



‎B.C. is far from being a shining example of good corporate tax policy. It is a lesson that Albertans should make sure they understand when they vote in May.

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