The More Financially Educated Canadians Become The Easier It Will Reform Politics: The stupidity of corporate minimum tax – November 5, 2021,
This isn’t a Left or Right issue, because to be fair the Conservative Government of Canada supports supply management and often supports labor unions, so this idiotic move by Justin Trudeau’s government has less to do with Left or Right-wing politics and more to do with a lack of financial education in our school system. If you’re a pensioner, you should be getting nervous every time one of these new tax laws are passed, had it not been for the labor unions artificially raising the cost of living, allowing the government to grow, the fiat monetary system we’re under now most likely would allow most savers to be living off the interest in their bank accounts.
But ever since it became illegal for the housing market to crash, even Conservative leader Erin O’Toole has made it part of his party platform to make sure that housing prices in Canada remain as inflated as possible. cashflow from housing used to be cash flow from the interest in your savings account, via the PRIOR government initiatives like getting the Federal government via the CMHC involved in the housing market interest rates are now stuck on zero, therefore pushing more investors further out into the risk curve.
To solve this problem the same morons that created this problem now want consumers to pay for the problem. If you have any basic financial understanding you’d know that the corporate minimum tax will be paid by consumers. Recently the Canadian Dairy Commission (CDC) which is Federal Canadian Crown Corporation that fixes prices for Canadian consumers, decided that it will raise prices to justify the new costs its members are being forced to pay.
Well, these rise in costs are due to the Federal Government deciding to make climate change a priority because consumers have no other options to buy milk and eggs at fair market value, members of the Canadian Dairy Commission need not worry about competition. Well, it’s the same thing with these corporate minimum taxes, fewer corporations will be able to exist which equates to fewer businesses being started, which equates to less competition and higher prices for consumers.
This corporate minimum tax similar to a minimum wage will send certain countries that don’t adhere to the corporate minimum tax. One of the main reasons China is so powerful today is because of the minimum wage law created by the labor unions, the minimum wage law along with all the other demands of labor unions pushed a lot of domestic manufacturing businesses offshore. It should be noted that these new carbon taxes have almost guaranteed that many of these manufacturing companies won’t be coming back.
Well, the corporate minimum tax will have a similar effect, some people think that corporations will simply raise prices, but the situation might be more complex than that. one of the reasons the supply chain is so complex is because of prior regulations. So maybe a Canadian company might be headquartered in Toronto, but their manufacturing is done China, simply to avoid paying the corporate minimum tax.
The government can only charge you taxes for what you do in its jurisdiction, so instead of hiring a Canadian to do something, the business person will employ someone in China or Vietnam, pay the tariff at the Canadian border and pass that cost over to the consumer, who might not see a price increase. But the government will see a drop in revenue because a business that could have been in Canada moved its operations offshore.
A market economy wasn’t supposed to have all of this government bureaucracy and the corporate minimum tax is Globalism, which is Global-Socialism. All of these initiatives are done in the name of “Fir the betterment of society as a whole” Of course if you had basic financial education, you’d know that the problem with most governments is that they spend more money than they take in, in taxes, meaning that the everyone is paying their fair share in taxes but the government keeps on growing and its lack of efficiencies requires more money.
The government doesn’t create anything, the perfect example of how useless the government is, is the internet, the government had been sitting on the internet for decades until the market and the private sector got a hold of it and created a marketplace for it. Now, it should be noted that the internet was created by individuals looking to make a profit, but via government regulations, these profit-seekers of course had to be granted permission. This is what government does, it stunts the growth of civilization and when people have proper financial education, we can limit government influence on our lives.
Corporate taxes: What race to the bottom? | financialpost.com
Interesting times ahead