Alberta's new taxes

[perfecho]

Good for Eddie...... Had liked liked him as premier, but the puppeteers of the old regime didn't'. Now is the time.... If it ever turns around, we know the rules....

[Hamloc]

Perfecto, one of the reasons for the NEP was the high global price of crude oil in 1979 of $40 usd. Part of the NEP was a made in Canada price for oil which kept the price below world price subsidizing eastern Canada. It also raised the federal government share of returns from oil at the wellhead from 10% in 1980 to 24% in 1983. At the same time reducing the producers return from 45% to 33%. Alberta received 43% instead of 45% in the same time period. This resulted in much less oil activity due to lower returns and the resulting low in drilling activity which bottomed out in 1983. Another interesting side affect was the Fed Liberals projected a deficit of just over 11 billion for 1983 based on increased energy revenues, these never materialized and the deficit ballooned to 29.7 billion. The NEP ended in 1985 when the world price of oil hit $10 usd a barrel.

Through this same period Norway experienced an economic boom due to high world oil prices, a boom which contributed a great deal to their financial standing today. Economists put the cost to Alberta through this period at between 50-100 billion dollars.

Perfecho I totally disagree with you on the NEP I believe it had a lot to do with the poor economic performance of Alberta during this period. The taxing policies of Premier Notley's government shows that they have learned nothing from history.

[LEP]

I agree that pennies per liter will have no effect on consumption or making people act greener.

Moving from coal to natural gas is a bigger deal. All manufacturing and heavy industry uses power and increasing the cost discourages growth and makes business uncompetitive.

Anybody wonder why the oils and are cheerleaders here?

If you read the press release, these taxes are going to the big emitters to become more energy efficient (read BIG HANDOUTS). Where do you think the majority of the money will go?

The article also states that the money can also be used to cover deficits. So a token payment to the taxpayer and split the money the the oils and producers.

You guys were worried about the conservatives?

[LEP]

Correction where the previous post says oils it should read oilsands

[perfecho]

What taxes are unreasonable from Notely...the 12% Corp taxes that is still the lowest in the country...especially when corps made the kind of money they did.
As per oil glut of 80's...

"After 1980, reduced demand and overproduction produced a glut on the world market, causing a six-year-long decline in oil prices culminating with a 46 percent price drop in 1986."

"The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985.[1] Long-term effects of the recession contributed to the Latin American debt crisis, the savings and loans crisis in the United States, and a general adoption of neoliberal economic policies throughout the 1980s and 1990s."
taken for Wikipedia.
Remember the interest rates...in access of 20%? You really believe that Trudeau caused all that with NEP? I agree it wasn't great for Alberta, but I believe outside forces contributed to the length and depth of that recession.
The really sad thing is , "we" didn't learn from history....Remember...

“Please God, give me one more oil boom.” “This time I promise not to piss it away.” Guess what we did...
Notely had nothing to do with that part!

[Hamloc]

Yes I remember the high interest rates of the early eighties and the fact there was a global recession. My point was that the high tax regime of the NEP made Alberta's economic performance much worse. Since your a fan of Wikipedia look the NEP up on there and read.

As for Premier Notley's latest tax proposals, if the carbon tax is such a sound tax why are 60% of Albertans going to be eligible for rebates? What is the point of applying the tax and then giving it back? As for the 12% corporate tax, I believe it was raised to raise revenue, most large companies Alberta are losing money right now. 12% of nothing is still nothing. A sales tax is the way to go.

[perfecho]

I do agree that the NEP started the spiral...but others influences made it much worse.
I agree on the sales tax....would be the fairest. Think this is "sacred cow" that the Wild Rose would try to slaughter over. Raising the Corp tax at least sets up for future...maybes. The carbon tax...time will tell, not sure I am sold either, however the perception is Alberta/Canada is doing something about CO2 contributions, and in todays world, this seems important...whether its true or false.
I am still good with Notely, but again, time will tell. And, she will have an expiry date as well.....

[perfecho]

My point, was that although there were many factors with the 80's downturn, Trudeau gets labelled, (and he should carry some of the blame)....just as the NDP will likely get labelled for the massive downturn of 2015...people remember what they want to remember and put the blame on "not their party"...kinda like "my son couldn't do that!
And I really don't have a party, dislike the party system.....