- Joined
- Dec 14, 2013
- Messages
- 980
Just wondering about some investor opinions on the NDP provincial budget released yesterday (Budget details Alberta Government website).
A few of my thoughts:
A few of my thoughts:
- Positive to be investing into infrastructure: we are entering into a slower economy and its a much better time for government projects. Government developing during stronger economic times increases prices for private developers and erodes profit and reduces capacity. It also over-builds an industry doomed to bust
- Long term care facilities and seniors: glad to see more investment here
- $5,000 job grant for new employment hires (up to 10% of annual wage): not a good idea. Employers hire when they need workers. This probably isn't much of an incentive for larger employers and hasn't really enhanced the competitive marketplace in any way. Corporate tax rate is up to 12% but they are handing out $5,000 grants? This is just a PR piece. Private business is a lot more efficient in making these decisions than by government mandate, in my opinion.
- Wine / alcohol and cigarette tax: obvious easy targets. I think a PST would have been a lot easier and cheaper to implement. These taxes are still drop in the bucket
- Exhausting the contingency fund
- Negative: no budget for affordable housing. Fully allocated to senior's housing.
- Troubling: we have a $14.8 billion operational deficit over the next 4 years (the Liberals federal party suggested ~$10 billion deficit over the next 4 years to see the scale here). I love investing in infrastructure. That operational deficit will grow another ~$2 billion if oil remains at a depressed level.