Tax Responsibly

By Jake Tynan (2L)

Be wary of st\rong drink.  It can make you shoot at tax collectors… and miss.  ~Robert Heinlein
Everyone loves taxes.

A year or two ago B.C. issued a fifty dollar rebate for taxes levied for environmental purposes. Environmental groups campaigned for greater taxation for their myriad of ideas. It was suavely suggested by the government that the body politic as a whole would realize the purpose of this money, and use it accordingly. How well do you think that worked? Personally I went to the liquor store.

Taxes are needed to pay for the things we want. Period. We want working roads, clean water, primary education and to escape the horror of an American health care system.

Taxes are necessary. However, I can imagine a world of bureaucratic waste where, if I was being taxed, I would be bitter. So what could we tax that is not personal income? Put a friendlier face on taxation. Someone else’s face.

Canada has the 2nd largest oil reserves in the world. And when I say Canada, I largely mean Alberta. Alberta has something akin to 40% of all oil reserves in Canada. Wikipedia says Alberta produces 1.86 million barrels a day. Norway produces 2.56 billion barrels a day. Norway has a 400 billion dollar sovereign wealth fund that claims to own 1% of all publicly traded stock in the world. Now thats-a-lotta stock. Surely Alberta has something similar yes? No? Why? Good question Jake.

Alberta’s corporations are opposed to taxation as a basic principle. Might eat into their profits. Go figure.
A few months ago I was (but probably shouldn’t have been) surprised when the Stelmach government cut the government share of oil revenues by three billion dollars to increase corporate investment.

Let me tell you, the oil is not going to run away. The wonderful thing about capitalism is that if there is any profit to be made, someone will find a way to make it. The oil will be sitting there waiting for someone who will take a 6-8% profit. Why slash 3 billion from your budget? Idiots.

Alberta is one of the safest and most reliable sources of oil in the world. In the ever energy hungry world the oil will probably be worth more later than now. Green costs included. Now what could Alberta’s government have done with those three billion dollars?

It could have expanded Edmonton’s mass transit system from its stellar one line system upholstered in 1960s fabric, or funded hospitals so they didn’t have to close beds. Maybe set up a train that runs from the airport to the city, or from Calgary to Edmonton. Or how about increased funding to the University so they didn’t have to increase tuition and differential fees?

I’m not suggesting we go nuts and grind all forms of economic advancement to a halt. I am suggesting a long-term view of things. Not a 5 year plan. A 100 year plan. Geographic luck has given Alberta something that could make it a utopia. Don’t waste it.