Who pays Income taxes when Corporate Business Leaves Canada? Under Trudeau billions lost in corporate tax revenue – June 28, 2019,
There’s a myth about taxes that a lot of people have a hard time comprehending on the Political Left. The myth is that Government Employees work for free. Public Servants collect a paycheck, in Canada most public servants are unionized, meaning that they have a separate entity that will fight to assure that their client the public servant gets the most amount of money off the backs of the private sector taxpayers as possible. Now, in Canada we have these things called Crown Corporations, which should be counted as Public Sector jobs but aren’t which make it seem like Canada’s public sector is a lot smaller than it really is. The end result of all of this Canada that Canada is heavily dependent on the Private Sector to be successful in order to pay for it’s ballooning, entitled public sector.
Now, under Justin Trudeau there have been media bailouts and deficit spending, Justin Trudeau has also hired more public sector workers and raised taxes on the Private Sector because according to Justin Trudeau only rich people were using it, Justin Trudeau cut down the contribution amount for the tax-free savings account. Making matters worse America hired Donald Trump to be their president and Donald Trump cut regulations while Justin Trudeau increased regulations in Canada. Regulations are actually the biggest job killer because regulations will make a business person think twice about investing in Canada. The other message Trudeau sent by bailing out the media and other private companies is that some companies in Canada are too big to fail and therefore the government will reward particular companies using the tax dollars from the companies the Federal government deems not as important.
Now, less investment by the private sector into the Canadian economy equates to fewer Income taxes being collected and for people who don’t understand tax collection, although employees pay the largest chunk of taxes, it’s the added taxes that our government can also charge to production companies that fuel the Governments tax collection. So as an example a carbon tax, if there are fewer gas stations or if people purchase less gas, expectations for tax collection will inevitably fall short as consumers adjust their consumption levels, so taxes that would have been there prior to the carbon tax, disappear as consumers shopping habits change as well as a companies business model will change to remain profitable.
Again I have to remind readers that most businesses are in debt or have to answer to shareholders of their business. Once the government becomes a larger partner in a business, that business has to find a way to make a profit because even in the investment community, financial advisors have a fiduciary duty to their customers to get them the most profit and if they fail to do that, people will sell shares of stock, sometimes at a deflated price to find profits in another company that could be in another country.
Because taxation is theft, loopholes have to exist in Canada. If you remove corporate loopholes, Canada is Venezuela, how they do it in Europe is the governments there focus on regressive taxation, which means consumers pay the taxes which equates to less innovation and higher cost of living. Canada currently is in limbo with what taxation direction it’s going to do going forward, but the problem with Canada and I’ve said this previously is that unlike many European countries, Canada still embraces minimum wages, which is similar to a growing public sector which means it’s almost impossible to allow the Canadian economy to deflate.
Minimum wages mean certain businesses will not exist in Canada, because the minimum wage means that manufacturing goods that sell for a dollar at a dollar store will never make economic sense for a private business, this, of course, makes Canada reliant on cheap labor imports from countries like China. In order to service Canada’s Public sector, Canada must also devalue its currency to attract businesses who sell to U.S customers to make Canada their home. This game Canada is playing doesn’t align with Justin Trudeau’s social justice policies, because the reality is we’ve created a system of governance that’s not economically sustainable in the long term.
Our system of governance isn’t sustainable primarily because of the size of our public workforce, which by the way by my standards include Crown Corporations and Corporate entities who are shielding from the competition via the Government legislation and regulation. Now, the reality is if Canada had a stronger dollar and a sustainable economy, China would be reluctant to take our people as prisoners, furthermore, if Canada spent more money on its military we wouldn’t be lapdogs for the United States. We signed these extradition treaties(Meng Wanzhou) because the truth is Canada during an armed conflict would have a very difficult time protecting its borders and no this isn’t because of Canada’s population, the reason we have these problems revolve around what we’ve prioritized.
Canada has ‘broad international coalition’ of support on China file: Freeland – TheCanadianPress
We’ve prioritized growing the size of our government, we’ve embraced socialism and Keynesian economics and in any economic system, there are trade-offs. The trade-off we made as Canadians is by disallowing a free enterprise system in many parts of our economy, we’ve allowed particular industries not to create certain jobs in Canada and under Trudeau, things have gotten progressively worse as Trudeau and his cabinet have signaled to the markets that, social justice and the environment according to how the Globalist view the world is the direction the Canadian economy will take.
No, Globalists own the large publically traded companies, but they often can’t control the actions of the smaller more mobile corporations, who if they haven’t already left are preparing to leave Canada if this nonsense continues. There’s a concept by Liberals that Bill C-82 is going to fix or remedy money fleeing Canada, it’s a silly concept, America is right across the border and even if America goes socialist, there are U.S tax havens like Puerto Rico which companies are using to shield themselves from taxes, rich people, rich corporations are mobile, especially in the modern era, assuming that you can extort a privately owned business to do what you say is preposterous, it’s a short-sighted approach, even if Bill C-82 works the first few years, the end result will lead to fewer tax dollars collected as the market learns why money is fleeing Canada.
Lastly, I want to remind the reader that the people Liberals are labeling as tax cheats aren’t breaking the law, they’re exploiting tax loopholes that exist because taxation is theft! Don’t assume that Canadian society won’t flourish if taxes were abolished! Canada has some of the best and brightest minds on the planet and many of these individuals are being suppressed because the cost to start a business, the cost to innovate something in Canada is artificially high, because Canadians pay a lot of their money to pay for the public sector.
Supply Mangement actually means that without out Canadians would have more food producers offering lower prices to get Canadians business if this was allowed to happen in most sectors of the Canadian economy, poverty would eliminate more quickly, now the downside to this free enterprise system is price stability, prices deflate in a free enterprise system, which could also mean wages could deflate also, which means that individuals will have to do a better job saving the money they make, which also means that the central banks would have to answer to the demands of market to raise the lending rates to meet the demands of the consumers. Anyway Canada, you’ve been warned, vote for these Liberals if you want too, just don’t say we didn’t warn you about the disasters that are brewing.
Canada spurred to action after billions lost in corporate tax revenue
– TheCanadianPress
Interesting times ahead