Quote:
Originally Posted by Stormer
I mostly don't agree with comparisons to Norway. The cost of living in Norway is atrocious and taxes are punitive. The VAT alone is 25% (15% on food) vs. Alberta 5% (GST) 0% on food.
Alberta could have had a sales tax for the last 40 years and put a $100 billion into savings, but they made the choice to leave that money in the hands on citizens. You can argue whether that was the right long-term economic policy, but that is what Albertans chose.
Remember Alberta has 100's of years of oil sands reserves while Norway is supposed to run out of oil in the near future. Further Alberta has to share its energy wealth with the rest of Canada. They are apples and oranges.
If Alberta doubled its royalties on oil production, investment would dry up to near zero.
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I remember a study from a few years back that estimated that if Alberta didn't have energy royalties they would have to have a sales tax of 19% to maintain their spending at that time.
Do a google search on "Alberta vs. Norway" and come to your own conclusions. Whether you include the keyword, "squandered" in the search is up to you. Alberta's reckless spending is the key point in my mind - not sales taxes or royalty rates. Alberta does not share its energy wealth with the rest of Canada - it retains 100%. Once Alberta (as with Sask now) slipped into the have province territory there is no financial equalization offset. I have seen first hand the effects of politically motivated spending in various sectors in Alberta that have had the net effect of gutting neighboring province's industries - we share Alberta's energy legacy in that regard. I have also heard countless stories of public money being spent less than prudently for political purposes. Do you think Alison Redford was the only person in Alberta government that was using public money inappropriately? 44 years for one party in power....there are going to be lots of skeletons in closets.
There has been tremendous growth in Alberta, unbridled and uncontroled growth that has had serious negative impacts on its own province and neighboring provinces that provided significant gains to people on the right side and the right families with the right MLA connections. Tremendous wealth has been generated in Alberta in the last 10 years but provincial taxpayers have deficit and debt to show for it.
I'm not a fan of the NDP but bravo to the people of Alberta for resisting the conservative dogma and fear mongering and voting for long overdue change.
“We’re going to put an end to the gravy train.”– Rob Ford, Oct. 25, 2010.
Sadly, even Rob Ford would be an improvement as premier of Alberta.