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Comments Effecting Canadian Events – Ken McGregor

Posts Tagged ‘Reddeer

Is It To Late? Is The Battle Lost For Fiscal Responsibility?

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The benefit train left the station years  ago and is now picking up a real head of steam. Not only do the generations of today want great jobs and benefit packages, they are demanding it whether they earn it or not. The problem is they are no longer affordable. With never-ending increases in costs and benefit expenses , companies can no longer compete and the dwindling number of taxpayers can no longer subsidize them. In Alberta the top 50% of the earners pay 97% of the personal tax bill while over 40% of their wage is already taken towards taxes and fees. Yet, Albertans are crying out for more money for health care and education when 65% of the provincial budget  already goes to these 2 items.

Even though Greece has already gone down the path of social spending and has ended up in ruins ,¬†The majority of Canadians¬†can’t understand they are on the same path. 60% of Canadians vote for a left leaning social party rather than a fiscal Conservative¬†party.¬†they are hooked on¬†free¬†social programs. But like Greece Canada is¬†in debt by over¬†one trillion¬†dollars and climbing. We are borrowing money for these so-called free programs with no real plan to pay down the debt. We borrow in the good times and borrow even more in the bad. The Canadian Government debt for 2012-2013 is projected to balloon to $605 billion. The gravy train is on a roll.

A Greece election is now scheduled to be held on 17 June 2012 after a coalition government was unable to be formed following the May election. After¬†increasing taxes and cuts to benefits¬†,Greeks¬†turned to the streets with violet demonstrations. They just can’t understand they are broke and are poised to vote in a new government to start the spending. They actually think that Germany¬†will bail them out indefinitely. Completely delusional thinking but after decades of lavish benefits¬†they feel entitled and want someone to pay for them. If any government¬†tries to stop the entitlement train they will voted them out.

We are now seeing signs of this Greek style entitlement in Canada. With rioting students in Quebec and a dysfunctional Liberal government voted back in, in Ontario, Canadian voters are showing signs of tossing good fiscal management for never-ending free social benefits that the NDP offer. Our governments are caving in from the federal to the municipal. No politician would now dare go against the tidal wave of social entitlement and hope to get voted in.

I would think the next federal election will be the turning point. Do Canadians go Left and continue piling on social benefits and debt, pillaging the last remaining dollars of the top 50% earners and corporations to subsidize their follies like many of todays European countries or stay with a center right conservative government and continue the battle to create prosperity through education, hard work and paying down our debt .  Looking at Ontario and Quebec it might be too late for the fiscal right and Canada. We can only continue to educate the entitled thinkers and point them to the European disasters that await them if they vote in an NDP or Liberal government, and hope they wake up.

Please leave a comment or email me at ALBERTASOAPBOX@gmail.com

Poll – Is Alberta’s Personal Tax System Fair?

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The top 50% of the earners in Alberta are paying¬†97% of the¬†personal tax bill contrary to what many believe. The federal government stats are also similar¬†to Alberta’s. As the Alberta government’s budget keeps growing with 65% of its budget going to just two items, health care and education ,and the average Canadian already paying over 40% of their wage to taxes and fees there is becoming fewer taxpayers to foot the bill. What do you think? Cast your vote and leave a comment.

Source: page 99  Source of Alberta personal income tax revenue chart budget 2012-2015  http://www.finance.alberta.ca/publications/budget/budget2012/fiscal-plan-tax-plan.pdf

Is Canada being Greekinized?

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Looking at all the troubles in Greece today its hard not to look at how they got into their financial woes and if we are not following the same path. Todays working and retired Greeks have spent all their money, robbing the futures of the young. Wallowing in lavish early retirement benefits free health care and education for years, they have left over 50% of the youth unemployed with nothing. no future no hope. with their economy in a shambles. Are we Canadians going down the same path doing the same to our youth and economy?

Its become clear¬†looking at¬†the bigger Canadian provinces¬†the entitled group is becoming the majority. With the Liberals being voted back¬† in¬†Ontario even with its dismal¬†track record and riots in Quebec, the public doesn’t¬†want to give up any benefits¬†regardless¬†if they can afford¬†them or not. The left leaning socialist politicians just keep blaming¬†Western Canada for all their problems and ¬†promise more each election.¬† Now the public feels its their right for free daycare, healthcare, education and retirement benefits just to mention a few, just like Greece.

Greece has already run into the problem of not being able to tax the earners any more. Presently an earner making between $15,000 and $40,000 has approximately 55-60% deducted from their paycheck in taxes/fees and pension deductions. The top income tax rate is 45% plus social security payments of 16%, property taxes, an average VAT of 12% plus any additional municipal and government fees. Hardly worth working. And then there is Canada with an average total tax and fee rate of over 40% and creeping upward. And remember the 40% is a Canadian average. the bigger provinces are already Greekinized, inching their way to 50%.

It’s also¬†interesting¬†to note that the Provincial Health Care is higher than Greece¬†social services and health care combined. Most provinces pay over 40% of their budget¬†for health care , Greece pays¬†only 32%.¬†¬†looks ¬†like we aspire to¬†entitlement using¬†Greece and Europe as our role models.

And then there’s the debt. As we now know Greece is broke and looking for handouts since it cannot borrow any more funds to keep it afloat. Lucky for¬†Canada that we can still borrow since we are over one trillion in debt between the provinces¬†and the federal government. So much for our free entitlements. Were using other people’s money to¬†support¬†our lavish entitlements ¬†just like Greece did.

With the ever-increasing tax burden falling on the top 50% of ¬†tax earners, especially the top 10%. Canada , like Greece cannot continue raising taxes and living on borrowed money. The idea¬†to make the corporations pay didn’t¬†work for Greece either.¬†When Greece raised the expenditures of corporations they became less competitive and started producing less.

The parties over for Greece. Now they have to go home and sober up just like Albertans and Canadians¬†will have to do in¬†a decade or so if we don’t stop our foolish spending and rid ourselves of this entitlement mentality. and vote in governments that will take real leadership and build on what we have and not on what we can borrow.

Please make a comment below or email me direct at ALBERTASOAPBOX@yahoo.ca

Is a PST a Fair Tax for Albertans?

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Talking about introducing an Alberta sales tax is like taking a poison pill for Albertans. The cry for tax the rich is far more popular and gets a lot more votes and headline traction than any thought of a fair tax for all. The Alberta PC government also says that the Alberta tax system is fair for all, but is it?

In Alberta’s fiscal tax plan for 2012 it turns out that the bottom 50% of Alberta’s earners only pay 3% of the tax burden. Basically nothing, tax free. It also says a 2 earner family can earn up to $46,000 before paying a dime of tax. In essence¬†1/2 of Alberta earners contribute¬†not a Pennie¬†to growing Alberta, the health care system¬†or education. It’s all¬†left up to the top 50%¬†of which the top 10% pay 54% of all Alberta income tax and the middle earners pay 43%. The question is how much more can the PC government squeeze out of the top 50% to pay for its ever-increasing expense of¬†health care and education etc. With all¬†3 levels of government continually increasing taxes, and an average Canadian tax bill of over 40%, the¬†earners paying tax are getting maxed out. It’s clear that Alberta can’t just rely on 1/2 of its earners to foot the bill. All Alberta earners¬†are going to have to chip a little something into the pot to pay the expenses.

One way to do this is through a PST (Provincial Sales Tax) instead of increasing the Alberta Income Tax. Buy introducing a PST, 100% of Alberta earners¬†would pay something towards our expenses. Unlike Alberta’s¬†Liberal leader Raj Sherman’s¬†suggestion to increase tax¬†on the top 10% of earners (a popular vote getter) who already pay a huge¬†part of the tax burden, a PST will put the bill on everyone’s¬†shoulders. Those who pay nothing today will soon realize the free benefits they are getting is not free. Someone else is paying for it. The Federal government stats also show that the top 10% earners that pay federal income tax pay 71% of the total tax¬†bill and the bottom 50% only pay 2%¬†,contrary to the vote getting myth¬†the rich¬†don’t pay their fair share.

If we want¬†enterprising people¬†to come to Alberta we have to acknowledge their contribution instead of spreading rumors they don’t pay their fair share of tax and are just ripping off the little guy.

All Albertans should share in the cost of building Alberta and can do so by the way of a PST. The middle class is shrinking and the top 10% can’t support the rest of us much more than they already are. In fact they may just look elsewhere¬†to invest their dollars and talent if they get squeezed much more.

Source info:

Alberta’s tax share (page 99)¬†http://www.finance.alberta.ca/publications/budget/budget2012/fiscal-plan-tax-plan.pdf

Federal Tax Share http://www.heritage.org/federalbudget/top10-percent-income-earners

Please comment below or e-mail  me at ALBERTASOAPBOX@yahoo.ca

Politicians Spouting Frankenstein Economics

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Down trending Head and shoulders Pattern shows massive downturn ahead

Listening to the political pundits and politicians I get the sense that the economic crises is over or at least being managed. Then I read about Greece and Italy begging on their knees for Germany and  China to bail them out of their financial mess.

All this rhetoric from the politicians today is just a rehash of what was  said before  the crash of 1929. If we believe the baloney of the Irving Fishers of today , we are all headed for the poor house.

“Stock prices have reached what looks like a permanently high plateau. I do not feel there will be soon if ever a 50 or 60 point break from present levels, such
as (bears) have predicted. I expect to see the stock market a good deal higher
within a few months.”
– Irving Fisher, Ph.D. in economics, Oct. 17, 1929

More political double talk from 1929 :  http://www.goldeagle.com/editorials_01/seymour062001.html

How can any reasonable person (politician) think¬†they can spend their way out of bankruptcy. Countries like the US¬†, Greece ,Ontario/Quebec Canada have been spending like a bunch¬†of drunken sailors for years , promising huge benefits¬†to the gullible¬†public, and now its time to pay up. Unfortunately it’s not the politician that has to pay up it’s you the over taxed, tax¬†payer.

If the chart of the DOW above is any indicator¬†of things to come it’s just a matter of time before the house of cards falls regardless¬†of how the politicians¬†try to explain their Frankenstein economic policies of spending in the good times and spending even more in¬†the bad times,¬† never paying down their debt.

So¬† (Canadians) get your wallet out. Regardless that your¬†already paying over 41% of your wage to taxes¬†(combined) and fees, you’re going to pay more to¬†bail out¬†our frivolous politicians, or maybe we can follow¬†British Columbia’s¬† example and some common sense and vote down unwanted tax increases and stop pretending we can afford all of our so called free¬†benefits.

Head and Shoulders explanation: http://www.onlinetradingconcepts.com/TechnicalAnalysis/ClassicCharting/HeadShoulders.html

Please leave a comment below or email direct to ALBERTASOAPBOX@yahoo.ca

Alberta – Are The TORIES History?

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After 40 years in power is the Alberta Progressive Conservative Party on its way out the door. If History give us a clue, it could just be the case.

Alberta’s first provincial election was called for November 9, 1905, with A.C. Rutherford’s Liberal Party winning 23 of the 25 seats. Successive victories in 1909,1013,and 1917 kept the Liberals in power for 16 years until their downfall in 1921. Their demise was mainly due to Falling grain prices and the inability to finance all the proposed irrigation
projects in southern Alberta . In 1921 disgruntled Albertans, feeling the government was ineffective, elected the  United Grain Farmers into power sending the Liberals into the  political history book.

When the UFA party took power life was good. Oil¬†was bringing in the jobs and money. It couldn’t get better. But when the great depression hit in 1930 many Albertans where in dire straights and looking for a new government that could give them answers. Caught in bad times and scandal the UFA was defeated by the Social Credit¬†Party in 1935 and like the Liberals in 1921 were sent¬†packing never to be heard of again.

The Social Credit Party led by William Aberhart, began its long  36 year reign in power from 1935 to 1971. throughout its tenure big oil discoveries turned Alberta into a booming province, Premier Manning was able to meet all the demands of Albertans that kept him in power for 6 terms. But even though the Social Credit was doing well, by 1971 the voters were looking for a more younger inspirational leader with new ideas. The Social Credit seemed old and tired without any plan for the future. In 1971 a new fresh Conservative Party led by Peter Lougheed walked away with the election and like all its predecessors the Social Credit Party disappeared.

So , is it the Tories time to head to dust bin like all the parties before them?  The Alberta Conservative Party, after being in power for 40 years, is looking old and tired without any real plan for the future. Albertans, like in the past, are again looking for a party with a strong plan and leadership that can give them security and well-being as they move into the future.

Just like in the past there are some new upstart parties like the Wildrose Alliance a vibrant conservative alternative. Will this new party, like the Social Credit and NFA in past history, put the Alberta Progressive Conservative Party to pasture? If the past history tells the story it looks like the end could be near for the Alberta PC’s.

Please comment below or e-mail me at AlbertaSoapBox@yahoo.ca

Written by Ken McGregor

May 16, 2011 at 10:53 pm

Alberta – Budget Time Bomb

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As the Alberta political parties filibuster over Alberta Health care trying to score political points with the voters, Albertans are getting stuck with the bill of an ever-increasing out of control health care and education system. Together these 2 budget items make up a whooping 64% of a 35.6 billion dollar budget , leaving only crumbs for the many other necessaries. If you want to go a little further and add in a third item, social services for 10.6%, you end up with a dizzying 74.7% of the budget for only 3 budget items, 3/4 of the total budget for 2011-2012. These 3 items, that have a large number of government employees, are going to continue getting larger taking up an ever-increasing portion of the budget. I find it bewildering that in a province that is supposed to be the economic engine of Canada that the Agriculture, Resource Management and Economic  Development is only alloted 5% while over 75% goes to government related services.

Interesting Fact: Over the past 10 years the education portion of the budget has increased 63% but the student population only increased by 3%.

The question I have is , where is all the money going to come from to pay for these 3 budget items and continue to grow the economy? It seems unlikely that the public can shoulder any more taxes since they are already paying over 40% of their wages to all three levels of government plus the added burden of  higher food and fuel cost. Since health care is the biggest runaway cost of the budget, estimated to grow to 17 billion dollars by 2013 from 13 billion in 2009, the government should make a concentrated effort to control this expenditure and use their imagination to develop a plan to increase revenue to cover expenses, without tormenting Albertans with increasing taxes.

Presently 78% of the budget revenue is coming¬†from tax¬†(55.4%)¬†and resource revenue,¬†(23.4%) which is just another tax in disguise. With the pressure on to increase spending for health care, infrastructure plus all other budget items its only a matter of time before this budget time bomb explodes if the government doesn’t get serious and develop a plan. So far the PC’s have done little to nothing over the years to get this budget bomb under control.

We need to start promoting and working with what we have to offer, gas, oil, agriculture. Stop this fixation on increasing taxes and letting the government spend on job creation . The government has never been efficient when it come to spending our money. Make it easier for larger companies and small business to expand and grow into larger markets. Let business create the jobs.  Let the government assist when required. By excess taxing  of companies and Albertans we are taking away their ability to spend in ways that will grow the economy. The PC government has had no plan in the past that has worked and most likely does not have any well thought plan for the future. With more business comes more jobs that can add more taxes into the pot for our budget needs.

I’m hoping come the next provincial election we will all take the time to check out which political party fits the “no more tax bill”. We need a real conservative¬†government that will promote Alberta, our products and business while maintaining¬†a balanced budget¬†, keeping us out of debt and diffusing the budget bomb.

Bloated Alberta Budget 2011-2012 – http://budget2011.alberta.ca/newsroom/charts-graphs.pdf

Frasor Institute РAverage Canadian family pays more in taxes than it does for food, clothing, and shelter combined  http://www.fraserinstitute.org/publicationdisplay.aspx?id=17445&terms=tax+burden

Please comment below or e-mail me at AlbertaSoapBox@yahoo.ca

Written by Ken McGregor

May 15, 2011 at 9:03 am