What a mystery this is.
Ooh, I know this! Is it capitalism?
It’s capitalism.
Corporate taxes used to cover over 30% of government revenue, it’s 10% now. The top marginal income tax rate peaked in the 1960s at somewhere around 80% on income exceeding ~3M/year (today’s money). We’ve had 4 decades of tax cuts while the cost of delivering services has increased more or less with the inflation rate. Private equity funds now have favourable tax treatment, and stock buybacks, previously considered illegal stock manipulation is a common practice. And so on and so forth.
If you want what you had, you have to do what you did.
I’m inclined to suspect the corporate taxes covering 30 percent down to ten, is more related to an increase in government spending and increasing individual’s taxes, than cutting corporate, because, believe it or not, they tax the living shit out of businesses, much more and it’ll start to cause failures. Often times businesses that would be quite profitable just on the other side of the border, are barely making it despite comparable sales, and taxes go up tomorrow,
Corporations aren’t your friends, they aren’t going to give you any preferential treatment that they aren’t seeing the better side of.
Capital flight is also not a thing, it’s a bogeyman set up by conservatives to avoid raising taxes.
Businesses also won’t leave. Their remarkable treatment in Canada will go down to slightly less remarkable. They moan and groan and set up a whole ad campaign about how this is going to hurt the consumer but that means it’s working. And if you mean “small business” there are so so so many way ways to create exceptions or offer grants to Canadians starting or operating small businesses, where the target is larger oligopolies and conglomerates.
It’s absolutely a thing, most corporations are a couple people running a business, and capital flight is absolutely a fucking thing, Just look at the difference between Saskatchewan and Alberta over 50 years because of different tax/government policies with the same base conditions and people. And then look at Montana for a third perspective of the same base conditions. It is so tiring listening to people buy these asinine takes in complete rejection of reality.
Funny that you mention complete rejection of reality… Did you even read the article?
I posted it for the title, not cause I believe everything I read in it.
Well then your a fucking idiot. And I vote you off this country fuck face
Being called this by what appears to be a Liberal supporter is actually a compliment.
Once again. Corporations aren’t your friend, no matter the head count. It’s that simple. Don’t simp for people who don’t give a fuck about you or your family. Full stop.
Second. Again. Capital flight is a boogeyman. Alberta and Sask aren’t comparable. Alberta has cities, amenities and established populations, Sask doesn’t. If you want to take anything flight seriously, how about brain drain in our high paying, sought after career sectors, where we educate our population only for them to leave for better opportunities elsewhere? Doctors aren’t going to stay for the pittance, and software engineers aren’t going to keep staying for the remarkable amount of investment the government is putting to try to establish STEM in Canada because the private sector isn’t competitive with their salaries. Fuck your capital flight, if these are the corporations you’re afraid of leaving I’m more than willing to say goodbye, because the ones who fill the gaps will likely see the case studies and change course.
I’ll give you a spoiler alert. They’re not going anywhere. Just like they haven’t left Aus, NZ or the other dozen and change 1st world countries with high corporate tax rates than Canada. It’s not happening, you’re afraid of a ghost.
Alberta has all those things because what I said happened THEN, you disingenuous goof. Capital flight is brain drain, they’re one and the same.
Aus, NZ or the other dozen
They’ve all been left behind. Fuck, you need to travel.
they tax the living shit out of businesses, much more and it’ll start to cause failures.
Why?
Taxes are on revenues, not gross profits. That’s why EBIT exists as a performance measure.
As a quick example of a made up corp:
Gross profits 1.1B
COGS + OpExp 1.0B
EBIT 100M
Taxes 10% (30%)
Revenues 90M (70M)
Now mom and pop barely alive
Gross profits 500k
COGS + OpExp 500k
EBIT 0
Taxes 10% (30%)
Revenues 0 (0)
Hey genius, people don’t continue on with businesses of zero net. Taxes in many provinces are at the point what would be otherwise profitable businesses aren’t worth it, that’s why you see so many abandoned. Taxes aren’t just on revenue, they’re on every aspect.
Lets break this down for you. Take beer. a bar doesn’t pay gst, pst or lct when it buys it, only when it sells it, but there’s already an excise and other taxes on it long before it reaches point of final sale. so say 45-55 dollars price a 24 case for the liquor store or bar if in a province with a form of LCB monopoly yet. the bar can’t sell it for less than 70 bucks or it’s paying you to leave with it. 75 now as of the federal increase depending on province, just to not lose money selling beer to leave the premises, and you don’t want to increase it to a point you make money off that, because it’s at least getting people in the door because you’re price matching the liquor store, Then the carbon tax. the bills. the taxes on those, the tax tax tax on tax. if you do manage to make any money after all that, they tax that too. Small business books look like the shit people used try kill the sheriff of Nottingham and prince john for.
But spending cuts in the 1980s and 1990s, along with a move to put more responsibility for economic and social well-being on the shoulders of individuals, caused low-income Canadians to fall further behind, the report says.
So neoliberalism. Neoliberalism happened.
Who could’ve guessed.
It’s amazing reading some of these statements. Spending increased every year but cuts are the problem holding people back, when taxes have increased dramatically since then too.
when taxes have increased dramatically since then too
No they haven’t:
In 1961, families paid 33.5% of their income on taxes, but by 1969 they were paying 39% and in 1974 they paid 43.4% of their income. So, if you compare the 2009 effective family tax rate to 1961, you will find a 25% increase, but you will only report a 7% increase since 1969 and an actual decrease since 1974.
(Note this analysis is circa 2010, but things haven’t changed substantially since then aside from the post COVID inflation spike that’s still subsiding).
But enjoy the alternate reality brought to you by your “friends” at the Fraser Institute™️.
Taxes don’t tend to affect you when you make less than the tax cutoff.
But not having the social services those taxes used to fund suddenly means you don’t get to eat dinner tomorrow, or you can’t go to a family doctor because there aren’t any available.
People like to complain about taxes, but taxes never made someone destitute.
The people in this country who make less than the tax cutoff are so few it doesn’t even come into a discussion between actual adults on general policy. You clowns would impoverish everyone on the lie that that is what it takes to give a very few welfare.
“but taxes never made someone destitute.” that there is what we call a “lie”.
The people in this country who make less than the tax cutoff are so few it doesn’t even come into a discussion between actual adults on general policy.
Conservative provincial policy happened.
jesus christ why not just say “But Harper” outright? At least when the conservatives are in charge, they try fix everything the Liberals broke. But they break shit so bad, it’s hard to come back. We’ll be feeling this Trudeau for 50 years, and we still haven’t recovered from his dad.
I grew up being told about how amazing and great Canada is. I’m grown now, where is this great Canada? As I’ve grown I’ve seen what Canada did to my fellow native blooded people, wages are pathetic, housing is a disaster, food prices are a joke, healthcare is covering less and less, our government only cares about foreign citizens and not their own.
Where is the greatness of Canada? Cause I sure as fuck can’t see it
Our government has been pissing it all away since at least 1990.
It’s funny how infrastructure doesn’t maintain itself.
Maybe they should try doing that instead of the last 10 years.
Our southern neighbour has a huge lobbying campaign to turn our system in a private health care system.
It’s not that they are actively working towards this that is the problem … it’s equally problematic that we citizens are more than willing to just wander around like zombies and let it all happen.
The most effective lobbying campaign has been being exposed to our system. I am so sick of this fucking tim hortons patriotism bs
You sound successful enough and able to pull yourself up by the bootstraps down south, why not have a go at it and leave us to fester in our socialist hellhole?
That was the plan before I ran across this current opportunity. Maybe in 5 years when I have all the kinks out and don’t have to supervise directly.
Cool cool cool. Do be sure to shut the door in the way out, and not to let it hit you in the tukus as you leave. Ta ta!
