The Fraser Institute released a study this morning which should be of interest to politicians who don’t understand The Effect of Corporate Income and Payroll Taxes on the Wages of Canadian Workers. Here’s what their new study has to say today about corporate taxes in Canada:
“…we find that a 1% increase in the statutory corporate income-tax rate reduces the (inflation-adjusted) hourly wage rate by between 0.15% and 0.24%, depending on the model specification (these results are for workers employed in the private sector). Based on these results, if the 2012 unweighted average combined corporate income-tax rate for the ten provinces (27.34%) increased by just one percentage point to 28.34%, the national hourly wage rate in the following year would decrease by between $0.13 and $0.20, which translates into annual wages that are lower by between $254 and $390.” Continue reading A First Step for Justin
When the NDP government was elected in Alberta, I sold two of my six oil stocks. Yesterday morning before Stephen Harper’s agreement with the G7 was announced to phase out fossil fuels by 2100, I sold two more. This morning I won’t sell my last two. Reason? One of the companies is not active in Canada, the other is on an acquisition march and might become a take-over target itself.
That’s about all the uncertainty I can tolerate in the oil and gas industry. I don’t want to lose any more sleep over the Prime Minister’s commitment. I’ll leave the sleepless nights to Harper and he will be having them. Why? Because in the coming months his Conservative government will likely lose any hope of forming a majority government in the next election and his party may not even form a minority one. In fact, by the end of the year, they may not have much political clout at all. ‘Eastern treachery’ will cost him dearly in the West, although many Conservative voters in provinces to the east of Ottawa aren’t going to be very happy either. Continue reading Harper Stumbles
Some years ago, I lost my closest friend to lung cancer. I think of Dave often because of a legacy, almost a special gift, he left me. It’s not a material one, rather it’s an attitude and approach that he honed and fine tuned until it became integral to how he thought and conducted himself in business and personal relationships.
Dave spent the first half of his working life as a sales trainer and executive in a tough business, the life insurance industry. In those last years in head office, Dave took up a hobby. Every weekend he loaded up his van and headed out to one of the biggest flea markets in southern Ontario. Over the years, his spot became permanent and indoors. He called it simply Dave’s Place. Evenings during the week he was out scouring Toronto for stock. I once asked him why he did it when he had such a good regular job. He answered, “Because I love the action.” Eventually, Dave’s income from this hobby was paying more than his job at head office so Dave took the big step. He resigned as a training exec and opened up his own business and an antique shop. Continue reading Dave’s Question