Oil money

[Summiteer]

Every government wastes resources of which cash is one.
Just remember:
1) Large volume of the profit leaves the province for federal transfer payments, last I heard was over 19 billion a year. That's right we share - a lot!
2) Every job I work on in the tarsands the mojority of tradesmen are from out of province - aka they are paying provincial tax in their home province - don't get me started on forgien workers.
3) The money the out of province workers make circulates the local economy they live in, Not Alberta, and good for them!
4) Half the guys hired for my project are fom BC so when our neighbors to the west pout about Alberta they may want to dry an eye and give their comments some deeper thought as can other whiners.

The tar sands benifit the whole country as it should - we are not the center of the universe - Ontario is! Well actually it is a tie with Quebec.
When oil money dries up the whole county suffers - neither logging, fishing, mining, textiles or farming spreads the amount of wealth throughout the country like oil and gas.
That is just how it is - no other single industry can support as many families - it will hurt accross the country. Thank goodness we have the other industrie to prop us all up when needed.

Alberta will survive - but it is gonna hurt those that are carrying large debt.
Been in the game almost 30 years and big oil and construction companies are reacting way different to this one in long term planning.
My guess is at least three years before any real recovery STARTS to occur, tighten yer belts.

Not defending our grossly wastefull government or some of our personnel waste, just my point of view on where some of that excess money goes.

The provincial government does not pay towards transfer payments. Our Federal income tax covers that. The reason the province is "broke" is because they are pretty much giving the resources away to the companies that pull it out of the ground. That and the fact that corporate taxes are lower than they have ever been. I'm not sure why people think that while our population has been growing steadily for the past fifteen years or so and the price of everything has gone up everywhere, that the answer to better infrastructure, government services and healthcare is to cut the income that pays for it. Cutting wages and laying the people off that do the work does not get things done. It makes things look good for a quarter or two then they get worse....

 

[pistoncontracting]

The provincial government does not pay towards transfer payments. Our Federal income tax covers that. The reason the province is "broke" is because they are pretty much giving the resources away to the companies that pull it out of the ground. That and the fact that corporate taxes are lower than they have ever been. I'm not sure why people think that while our population has been growing steadily for the past fifteen years or so and the price of everything has gone up everywhere, that the answer to better infrastructure, government services and healthcare is to cut the income that pays for it. Cutting wages and laying the people off that do the work does not get things done. It makes things look good for a quarter or two then they get worse....

So are you saying that raising taxes is the way to success??

 

[snochuk]

The provincial government does not pay towards transfer payments. Our Federal income tax covers that. The reason the province is "broke" is because they are pretty much giving the resources away to the companies that pull it out of the ground. That and the fact that corporate taxes are lower than they have ever been. I'm not sure why people think that while our population has been growing steadily for the past fifteen years or so and the price of everything has gone up everywhere, that the answer to better infrastructure, government services and healthcare is to cut the income that pays for it. Cutting wages and laying the people off that do the work does not get things done. It makes things look good for a quarter or two then they get worse....

Royalties from natural resorces sold. AKA transfer payment.

 

[pistoncontracting]

The provincial government does not pay towards transfer payments. Our Federal income tax covers that. The reason the province is "broke" is because they are pretty much giving the resources away to the companies that pull it out of the ground. That and the fact that corporate taxes are lower than they have ever been. I'm not sure why people think that while our population has been growing steadily for the past fifteen years or so and the price of everything has gone up everywhere, that the answer to better infrastructure, government services and healthcare is to cut the income that pays for it. Cutting wages and laying the people off that do the work does not get things done. It makes things look good for a quarter or two then they get worse....

The provincial gov't, like most gov't has a SPENDING problem, not an income problem. The very time Stelmack upped the royalty, is when many companies turned to Saskatchewan. Provincial corporate tax in Sask and Ab are nearly the same.

 

[mathrulz]

In my opinion, the problem with spending and budgets for government these days is the same as for a lot of companies - it comes down to the fight between capital and operational costs. Years ago, when common sense was allowed, decision makers would look at both of these expenses, but now a days, it's all about pleasing the shareholders, media, tax payer, etc... with the smaller up front capital cost. When it costs more to fix or repair later on - no worries, that's an operating expense, it was "unpredictable".

Take for example our roads, years ago, when Alberta truly had some of the nicest highways, government spent more $$ for a better quality of pavement. In return, we didn't have the continuous repairs on brand new roads all the time (i.e. Anthony Henday). Sure our population and traffic has increased, but so has technology. There is pavement available today that is even better and would require far less maintenance than say 15-20 years ago, but the higher capital cost means that government will continue using the cheap crap we are today.

Can't see the forest through the trees, tripping over dollars to save pennies... Call it whatever, but it's a definite problem in my opinion. :rantover

 

[ZRrrr]

Creative accounting in Government and the corporate world is running rampant. It is as you say....all bout the optics. Governments don't govern anymore, they just try to stay in power.

In my opinion, the problem with spending and budgets for government these days is the same as for a lot of companies - it comes down to the fight between capital and operational costs. Years ago, when common sense was allowed, decision makers would look at both of these expenses, but now a days, it's all about pleasing the shareholders, media, tax payer, etc... with the smaller up front capital cost. When it costs more to fix or repair later on - no worries, that's an operating expense, it was "unpredictable".

Take for example our roads, years ago, when Alberta truly had some of the nicest highways, government spent more $$ for a better quality of pavement. In return, we didn't have the continuous repairs on brand new roads all the time (i.e. Anthony Henday). Sure our population and traffic has increased, but so has technology. There is pavement available today that is even better and would require far less maintenance than say 15-20 years ago, but the higher capital cost means that government will continue using the cheap crap we are today.

Can't see the forest through the trees, tripping over dollars to save pennies... Call it whatever, but it's a definite problem in my opinion. :rantover

 

[rzrgade]

The provincial government does not pay towards transfer payments. Our Federal income tax covers that. The reason the province is "broke" is because they are pretty much giving the resources away to the companies that pull it out of the ground. That and the fact that corporate taxes are lower than they have ever been. I'm not sure why people think that while our population has been growing steadily for the past fifteen years or so and the price of everything has gone up everywhere, that the answer to better infrastructure, government services and healthcare is to cut the income that pays for it. Cutting wages and laying the people off that do the work does not get things done. It makes things look good for a quarter or two then they get worse....

Yes , I would tax the chit out of the companies till they all move or shut down, big or small ,does not matter.....
Just because they are big and invest "their money " does nor give them the right to make more money.....
no matter how many jobs they provide.....

That will certainly show them who is boss and help us all out......!!! LOL

 

[Skegmeister]

I think a healthy balance is what is needed for corp and personal.
An example of a resource rich country that all citizens benefit with free medical and in some cases free University is Norway.

 

[aocbiz]

Some of you should be in politics......probably get a few votes.

 

[ZRrrr]

Alberta STILL has the lowest corporate tax rates in Canada. Just making it on par with the next lowest would bring in billions. I highly doubt any of the resource companies would move or shut down.

These same companies enjoy massive subsidies in Alberta and export far more in profit than they invest back. Some good articles on just how much they play the jurisdiction of incorporation game and just how much actual money is exported out of country. I think you would be awe struck.

Trickle down economics is a lie, proven to be nothing more than corporate/government speak. Actual job/jobless numbers and actual corporate dollars reinvested paint a much different picture.

Yes , I would tax the chit out of the companies till they all move or shut down, big or small ,does not matter.....
Just because they are big and invest "their money " does nor give them the right to make more money.....
no matter how many jobs they provide.....

That will certainly show them who is boss and help us all out......!!! LOL

 

[S.W.A.T.]

I found the answer

https://www.youtube.com/watch?v=DO1Q7F23DxM

 

[pistoncontracting]

We need to make ourselves attractive with lower tax rates because of over regulation.