The Canadian Provincial Governments are ever Vigilant in Cutting High Taxes and Costly Regulations

Posted by PITHOCRATES - April 14th, 2012

Week in Review

How’s this for government?  A government that has a reputation of low taxes and sensible regulatory policies is attacked.  Not for raising taxes or passing more costly regulations.  But not being aggressive enough in cutting taxes and rolling back costly regulations.  How refreshing.  And how un-American of late (see Can Alberta regain its entrepreneurial advantage? By KATHERINE SCARROW posted 4/13/2012 on The Globe and Mail).

“At one time, Alberta was clearly a leader, whether it was tax reform, cutting red tape, or any other key issue affecting entrepreneurs. Unfortunately, in the past few years, the government has been stuck in neutral, as other provinces closed the gap.”

To restore the so-called ‘Alberta Advantage,’ Mr. Truscott proposes the following steps:

1. Long-term tax relief. He acknowledges that Alberta business owners have it pretty good overall, especially since they do not have to collect and administer provincial sales tax for the government. But But the fact that the other three Western provinces reduced their small business income tax rate leaves Alberta with a higher rate, eroding any advantage it may have had previously. “Staged reductions” in the small business income tax rate would go a long way, he suggests.

2. Commitment to cutting red tape. The province used to be a pioneer at ensuring rules and regulations made sense, and didn’t burden entrepreneurs, but the government has become complacent, emphasizing that the next leader must make regulatory reform a priority.

In Canada they understand that high taxes and excessive regulatory burdens on businesses hinder job creation.  And even though the tax burden on business owners was pretty good overall it still needs to be lowered.  Because other provinces had lowered their taxes.  In America those on the Left say that our taxes aren’t too high.  In fact they want to raise them further.  And cite the high taxes in Europe as their justification.  Instead of seeing it like the Canadians.  Who see NOT having the lowest tax rates is a disadvantage in job creation.

And while the Canadians worked at cutting red tape and worried about the affects of rules and regulations had on businesses the Obama administration has buried American small business under regulation after regulation.  The biggest one, of course, being Obamacare.  Which is scaring business owners out of hiring new employees.

It would appear the provincial governments in Canada understand business.  And the American federal government does not.  At least not the current one.  Based on its actions.  And its record.  So it’s no surprise that the Canadians have emerged from the Great Recession while the Americans still suffer in it.


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