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Agathon is offline Agathon
Prince
Leafs 4TW!! - CPA
Dec 2002
time: 00:37
  Old Post 28-02-2005 13:22
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quote:
The problem is that the surplus is based on overtaxation of the haves. When you are better off to be a poor child in Manitoba than in Ontario, there is a problem.


1. There is, properly speaking, no such thing as "overtaxation".

2. Ontarians do not pay enough tax to cover the services that they want. They could easily pay for them if they wanted to, but they have become tax averse.

3. The Federal Government is spending the surplus on things Canadians need. It isn't as if Ontarians have no power in its decisions, since Ontario is where Federal elections are largely decided.

Agathon is offline Agathon
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Leafs 4TW!! - CPA
Dec 2002
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  Old Post 28-02-2005 13:26
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quote:
The predicament Ontario is in is that they have the obligation to deliver the services, but do not have the power over the purse.


Yes they do. They can raise provincial taxes. But Ontarians don't want that, so McGuinty is blaming the Feds.

Ontario politics since I have been here involves whining about taxes and then whining about loss of services because of tax cuts.

Ontario is incredibly wealthy. If Ontarians want these services, they can pay for them. But then Ontarians would have to cut private spending, which they won't do. So they are shooting themselves in the head.

notyoueither is offline notyoueither
Deity
of naught
Aug 2001
time: 22:37
  Old Post 28-02-2005 13:26
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Az,

The only reason Alberta hasn't screamed, louder, is resource revenues have topped up provincial coffers and made the province able to bridge the gaps, and then some.

It was not always thus. When oil was $20 per barrel and we were in the midst of the NEP we were hurting, big time.

Ontario has no such cushion of revenue they have direct control over. I'm just surprised it took so long to become an issue.

notyoueither is offline notyoueither
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Aug 2001
time: 22:37
  Old Post 28-02-2005 13:33
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quote:
Originally posted by Agathon
quote:
The problem is that the surplus is based on overtaxation of the haves. When you are better off to be a poor child in Manitoba than in Ontario, there is a problem.


1. There is, properly speaking, no such thing as "overtaxation".

2. Ontarians do not pay enough tax to cover the services that they want. They could easily pay for them if they wanted to, but they have become tax averse.

3. The Federal Government is spending the surplus on things Canadians need. It isn't as if Ontarians have no power in its decisions, since Ontario is where Federal elections are largely decided.


The people of Ontario already paid the taxes, the problem is who they paid them to.

If the federal govt has enough money to waste a quarter billion on flags for Quebec (50% going to government friendly ad agencies) and $2 billion on a data base to keep track of guns for 30 million residents (count it, it's about $66 per person and they still can't tell who has what) then they have alltogether too much of our money and the provinces have alltogether too little.

notyoueither is offline notyoueither
Deity
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Aug 2001
time: 22:37
  Old Post 28-02-2005 13:36
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quote:
Originally posted by Agathon
quote:
The predicament Ontario is in is that they have the obligation to deliver the services, but do not have the power over the purse.


Yes they do. They can raise provincial taxes. But Ontarians don't want that, so McGuinty is blaming the Feds.

Ontario politics since I have been here involves whining about taxes and then whining about loss of services because of tax cuts.

Ontario is incredibly wealthy. If Ontarians want these services, they can pay for them. But then Ontarians would have to cut private spending, which they won't do. So they are shooting themselves in the head.


You can't raise taxes as if you are in a vacumm. They only recently benefitted from the exodus from Quebec, and then suffered their own to the West.

People in Ontario are likely to pick up and move to a more beneficial jurisdiction when you screw with them like that.

Again, they already paid the money. Now they need the benefits to be distributed in a more equitable way.

Agathon is offline Agathon
Prince
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Dec 2002
time: 00:37
  Old Post 28-02-2005 13:39
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quote:
The people of Ontario already paid the taxes, the problem is who they paid them to.


No. The problem is that Ontarians have become tax averse. Of course any national entitlement to anything is going to cost Ontario more than all the other Canadian provinces - that's because it is the richest province. Similarly, rich people in Canada pay more tax than poor people. That's how things work in modern societies.

Poor Ontarians will receive much the same benefits as poor Newfies if the scheme is instituted. So saying it is a bad deal for Ontario is misguided. It's a bad deal for the people whose votes McGuinty wants.

The Government of Ontario is in trouble, not because of equalization payments or anything like that, but because Ontarians have become irrationally tax averse. Their legal obligation to provide services like health care is what keeps the place from becoming a disaster zone. But in order to do that, they've been cheaping out on other things, like Toronto for instance.

Your second article is a good swipe against provincialism too.

notyoueither is offline notyoueither
Deity
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Aug 2001
time: 22:37
  Old Post 28-02-2005 13:42
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quote:
Originally posted by techumseh
Are you from Alberta? I am, and I think your proposition is absurd. If Canada was going red, then some sort of intervention would be guaranteed. But that's so far from what's going on, it is laughable. There, see?

What's going on is what ALWAYS goes on. The provinces and the feds are arguing over money. Big deal.

BTW, why do you start these things just as I'm going to bed?


heh. It is troll vs troll. Don;t worry 'bout it.

Where are you? And why do you go to bed too early?

Agathon is offline Agathon
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Dec 2002
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  Old Post 28-02-2005 13:44
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quote:
People in Ontario are likely to pick up and move to a more beneficial jurisdiction when you screw with them like that.


Let them go then. Wherever they move in Canada, the same rules apply (except Quebec - and how many Anglos really want to move there). You cannot avoid being taxed to pay for national health care and national programs in Canada.

If they want to move to the US then good riddance. I suspect most won't.

And the reason they can't raise taxes has to do with the whiny middle class. Harris cut spending and eventually got thrown out because he created a disaster. But even though that happened, Ontarians have got it into their heads that services should improve but taxes should stay the same. That's dumb and they only have themselves to blame.

notyoueither is offline notyoueither
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Aug 2001
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  Old Post 28-02-2005 13:45
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quote:
Originally posted by Agathon
quote:
It's not an invasion if it is invited, laughing boy.


Let me get you straight. The US will interfere in an internal Canadian political spat, thus creating an enemy of its greatest trading partner and making itself a pariah state among all its closest allies.

This isn't Kosovo, you loon. What are you guys smoking out there?


You said we had no choice, Aggy. I simply pointed out that when it came to American supplies of oil and natural gas, we have a choice.

Not to mention, how do you posit that Quebec has a power that other provinces do not?

notyoueither is offline notyoueither
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Aug 2001
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  Old Post 28-02-2005 13:47
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quote:
Originally posted by Agathon
quote:
People in Ontario are likely to pick up and move to a more beneficial jurisdiction when you screw with them like that.


Let them go then. Wherever they move in Canada, the same rules apply (except Quebec - and how many Anglos really want to move there). You cannot avoid being taxed to pay for national health care and national programs in Canada.

If they want to move to the US then good riddance. I suspect most won't.

And the reason they can't raise taxes has to do with the whiny middle class. Harris cut spending and eventually got thrown out because he created a disaster. But even though that happened, Ontarians have got it into their heads that services should improve but taxes should stay the same. That's dumb and they only have themselves to blame.


They aren't avoiding being taxed for healthcare! They already paid for it! Now they need the funds to get to the ****ing people who paid the ****ing taxes!

Is this some new math you are challenged by?

DaShi is offline DaShi
Prince
The Taste of Japan
Sep 2000
time: 05:37
  Old Post 28-02-2005 15:10
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quote:
Originally posted by Comrade Tassadar


I'm sure the US could use thirteen more states.


They had their chance!

Oerdin is offline Oerdin
King
of Internet Music.
Sep 2001
time: 21:37
  Old Post 28-02-2005 15:30
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Besides we'd only take 12 of them since we don't want the Frenchies.

Agathon is offline Agathon
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Dec 2002
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  Old Post 28-02-2005 15:43
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quote:
You said we had no choice, Aggy. I simply pointed out that when it came to American supplies of oil and natural gas, we have a choice.


No. You have no choice as far as an American invasion is concerned. That's just ridiculous.

quote:
Not to mention, how do you posit that Quebec has a power that other provinces do not?


Because they are willing to put separatism to a vote. What makes you think that such a vote would ever succeed in Alberta, when it has never succeeded in Quebec, where it has a much better chance? Albertan separation is just talk radio stuff and the dream of a minority of fanatics.

quote:
They aren't avoiding being taxed for healthcare! They already paid for it! Now they need the funds to get to the ****ing people who paid the ****ing taxes!

Is this some new math you are challenged by?


It appears to be you who is challenged.

Everyone in Canada pays tax to support the same healthcare for every Canadian. Rich people pay more; rich provinces pay more. That's how progressive taxation works.

Now to say that Ontario should pay less in equalization payments means that the health care of Canadians in other provinces will suffer.

Ontario can complain that the standard of healthcare in Ontario is worse than that of other provinces, and request a bigger share of the federal pot. That's reasonable. But I use the system and its working OK as far as I can see. In any case, such whining is not a threat to the system but a request for it to be rejigged in light of the facts.

You cannot say that Ontario has no power to affect the federal government: Ontario voters have the most.

What Ontarians can't do is whine that they pay more so they should get more. That's not how taxation works (for good reasons, which right wingers are patently unable to understand).

Add to this that the province is not taking in enough provincial tax to support its own services, but is trying to welsh out on its obligations to the rest of the Canada, and you have a better picture.

Oerdin is offline Oerdin
King
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Sep 2001
time: 21:37
  Old Post 28-02-2005 16:00
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Aggie, you keep ignoring the fact that Quebec isn't a poor place but it still gets huge amounts of money.

Agathon is offline Agathon
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Dec 2002
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  Old Post 28-02-2005 16:30
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quote:
Aggie, you keep ignoring the fact that Quebec isn't a poor place but it still gets huge amounts of money.


That's because there is a serious separatist threat.

I'm not ignoring it at all, I'm suggesting that a lot of Ontario's problems reside with its own residents rather than the equalization scheme.

Geronimo is offline Geronimo
King
st cloud USA
Jan 1970
time: 05:37
Question  Old Post 28-02-2005 16:46
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quote:
Originally posted by notyoueither
I should say that I have an insight(?) on the issue that is not obvious from the posted articles.

I listened to Naylor on the radio today. He all but said that equalization had been rigged to keep Quebec in Confederation. He said it was rigged. He said that Quebec got the greatest benefit of the rigging. He just never put a to b and came out and said it.

I was wondering if he were a Tory. Then I checked and saw the noises that McGuinty is making. Having heard the problems Ontario has been going through, it falls into place.

Federalism by bribery is not sustainable. Some people in Ontario are starting to say so. The debate over the next while wil be interesting, and will dwarf the schenanigans coming to light in the Gomrey enquiry. What is at question is the fundamental basis of Liberal governments of Canada, that being to bribe Quebec to stay.

Either that or the Liberals really want to sweep Gomrey out of the news. Erm...


If Canada reformed and Quebec threatened to leave, would it really threaten the unity of the rest of canada if it did? It seems to me that Canada without Quebec would get along just fine.

Why is it so important to keep Quebec happy even at the expense of not getting to have even a modicum of fairness in disbursement of tax revenues?

DaShi is offline DaShi
Prince
The Taste of Japan
Sep 2000
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  Old Post 28-02-2005 17:05
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Quebec has always been an irrefutable part of Canada.

Agathon is offline Agathon
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Dec 2002
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  Old Post 28-02-2005 17:18
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quote:
Why is it so important to keep Quebec happy even at the expense of not getting to have even a modicum of fairness in disbursement of tax revenues?


Because Quebec leaving would cause all sorts of problems. The Quebecers don't want to leave anyway. They've had three chances and taken none of them.

Geronimo is offline Geronimo
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Lightbulb  Old Post 28-02-2005 17:20
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quote:
Originally posted by DaShi
Quebec has always been an irrefutable part of Canada.


and after Quebec left in a huff, that would simply read

"Quebec had always been an irrefutable part of Canada."

Canada has no reason to kick quebec out but it also has no reason to give it any special treatment whatsoever.

To do otherwise seems like a perversion of the very idea of a federation.

Agathon is offline Agathon
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Dec 2002
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  Old Post 28-02-2005 17:44
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quote:
To do otherwise seems like a perversion of the very idea of a federation.


Canada loves perversion. Why else do you think they are letting those filthy, god-hating fags to marry!!1!!1!

[There was a great program on the religious channel tonight, where all the fundie bigots are trying to raise money to stop it]

Last Conformist is offline Last Conformist
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Jul 2003
time: 06:37
  Old Post 28-02-2005 20:50
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If I'm getting this right, the federal gov't takes in taxes, divides the money among the provinces, and the provinces provide healthcare with it?

If the same standard of healthcare is to be provided everywhere, why not have the federal gov't run it all? It seems to me the system is stupid mix of centralism and federalism.

Flubber is offline Flubber
Emperor
With a view of the Rockies
Aug 2000
time: 22:37
  Old Post 28-02-2005 20:57
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This is an age-old argument-- How do you divide the pie??

A few points


1. I agree with NYE in that there is a disconnect in Canada between the level of government that collects most of the revenue and the level that is charged with providing the bulk of the services. The feds have used the purse to encroach into provincial areas of responsibility throughout the years.

2. Quebec may not be a "poor place" but it has met the definition of a "have-not" province and the day that it does not will probably be very close to the day that equalization ends or gets downgraded a LOT. I just can't see the program continuing without the political clout of Quebec as a recipient. ( Although without transfers to Quebec, the necessary money for the remaining provinces would be a lot less and its pretty obvious that a billion makes a much greater difference to PEI than it does Ontario.

3. While I don't foresee Amerrican tanks in Alberta, one would have to be a fool to think that the US doesn't have a huge interest in ensuring the continuance of Alberta oil and gas into the US. Personally I don't see Alberta separating in the conceivable future . .. WHY ?? a lot of people in Alberta came from somewhere else in Canada and retain ties and family there. Add in the fact that Alberta is affluent and you don't get something that tugs at people to end the status quo. " Let's see, we should separate so we don't have to send money to Nova Scotia so my mom's hospital is somewhere near the standard of an Alberta hospital ??" --- I also don't see any big Albertan identity that would push people and in the end any separation would be largely about money-- I just can't see people breaking up a country over money ( one exception-- if something like the NEP happened again, you might have enough people POed to make for a credible threat but ultimately I don't think it would ever succeed

Flubber is offline Flubber
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Aug 2000
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  Old Post 28-02-2005 20:58
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quote:
Originally posted by Last Conformist
If I'm getting this right, the federal gov't takes in taxes, divides the money among the provinces, and the provinces provide healthcare with it?

If the same standard of healthcare is to be provided everywhere, why not have the federal gov't run it all? It seems to me the system is stupid mix of centralism and federalism.



Constitutional division of powers plus the normal power games of politics.

Last Conformist is offline Last Conformist
King
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Jul 2003
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  Old Post 28-02-2005 20:59
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What's "NEP" in context?

St Leo is offline St Leo
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Jul 2005
time: 00:37
  Old Post 28-02-2005 21:03 Visit St Leo<br><img src=/forums/images/staff-icon.gif>'s homepage!
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quote:
Originally posted by notyoueither
It's not an invasion if it is invited, laughing boy.


Worked for Hitler. He didn't invade Czechoslovakia. He was invited in by the Czech government because of unrest in Slovakia.

Bush == Hitler. QED.

St Leo is offline St Leo
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quote:
Originally posted by Agathon
1. There is, properly speaking, no such thing as "overtaxation".


I'd say that a tax rate of 101% of personal income would qualify for that label.

St Leo is offline St Leo
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quote:
Originally posted by notyoueither
People in Ontario are likely to pick up and move to a more beneficial jurisdiction when you screw with them like that.


Our income taxes are so high because our corporate taxes are absurdly low. As long the corporate taxes are low, corporations will stay in Ontario. As long as corporations stay in Ontario, jobs will stay in Ontario. As long as jobs stay in Ontario, people are coerced to stay in Ontario.

Flubber is offline Flubber
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  Old Post 28-02-2005 21:08
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quote:
Originally posted by Last Conformist
What's "NEP" in context?



National Energy Program

The federal liberals instituted a federal sweeping program related to energy that in Alberta was widely despised.


quote:
Trudeau's NEP still a bitter legacy in Alberta

;By JULIA NECHEFF-- The Canadian Press


EDMONTON (CP) -- As Canada remembers the life and times of former prime minister Pierre Trudeau, many Albertans still can't forget the bitter legacy of his government's national energy program.

In 1980 those three words reverberated through the oil company head offices in the posh glass towers of Calgary, the stately marble corridors of the legislature in Edmonton and the rough-and-tumble drilling fields of rural Alberta.

The three words brought a prosperous province to its knees. A look at the NEP

Here's a look at the controversial national energy program implemented by the Trudeau Liberal government:

Energy: Born on Oct. 28, 1980, as part of the first budget after the Liberals were re-elected in 1980. Abolished after the Tories took power in 1984.

Boom: Introduced in the wake of 160 per cent increase in world oil prices and the prolonged stalemate between Ottawa and Alberta over energy pricing and revenue sharing.

Fuel: Tried to achieve three objectives: oil self-sufficiency as a way to attain energy security; redistribution of wealth towards the federal government and consumers; greater Canadian ownership of the oil industry.

Fire: Wide-ranging set of measures included grants to encourage oil drilling in remote areas; grants for consumers who converted to gas or electric heating; new taxes on the oil industry; expanded role for Crown corporation Petro-Canada; government share of all oil and gas discoveries offshore and in the North.

Fizzle: Policy was based on the expectation that world oil prices would continue to rise indefinitely. When it began to fall in 1982, justification for NEP evaporated and it showed itself to be ill-conceived.

Legacy: Distrust of the federal government by the western provinces, which to a certain extent continues today.



The national energy program, conceived by the former Liberal government led by Trudeau, is still seen as Ottawa's blatant grab of Alberta's energy riches and an intrusion into provincial powers.

It's a pivotal event often cited to explain western alienation and to this day motivates the Alberta government to keep a tight grip on its business.

"The legacy of the NEP was billions of dollars going into the federal coffers at the expense of Albertans," Premier Ralph Klein said Friday, a day after Trudeau died.

Klein credited Trudeau for inspiring his own interest in politics, and cited the elder statesman's role in giving Canada the Charter of Rights and Freedoms.

But Klein also reflected on how Trudeau's energy policy divided East and West.

"If there was any incident that brought about discord, especially in the West, it was that particular issue," Klein said.

"Certainly the NEP made Alberta strong in our resolve to combat the policies of Mr. Trudeau and we remain strong today in terms of protecting our constitutional authority over resource development.

"So I think we are a much stronger province. People in this province say 'Never, ever again will there be another NEP.'"

The Trudeau Liberals brought in the energy program after the two oil price shocks of the 1970s, first in 1973 and then in 1978.

Alberta and Ottawa had already tangled in the so-called energy wars of the 1970s when the two governments feuded over energy pricing and revenue sharing.

The NEP, a complicated set of economic measures, kept the domestic price of oil below the world price. It was intended to protect Canadian consumers and the manufacturing heartland in Central Canada from the high energy prices of the time.

Ottawa also wanted a piece of the pie and for Canada to achieve energy security by increasing its oil self-sufficiency.

The feds encouraged resource exploration in frontier regions such as the Beaufort Sea by giving out special grants. They took a 25 per cent share of all oil and gas discoveries on federal lands, even retroactively.

The overall effect was to bring resource activity in Alberta almost to a halt. Western Canada became a less attractive place to invest. Provincial revenue was siphoned east.

Times got very tough, recalls Jim Gray, president of Calgary-based Canadian Hunter Exploration Ltd. The national energy program destroyed the oilpatch, he said.

"I've had people who lost jobs and it affected families and there were social implications in terms of the tension and stresses and that sort of thing," Gray said.

"And it all focused on one man. It was Pierre Elliott Trudeau."

The energy program followed a long history of economic alienation -- railway rates, monetary and other policies that worked to the advantage of Central Canada directly against the interests of the West, said Robert Mansell, head of the economics department at the University of Calgary.

Coming on top of all of these, the NEP "convinced most, I would say the majority of people in Alberta, that you couldn't trust the federal government and they were bound and determined to drive the economy into the ground," Mansell said.

"It would take many, many generations for that (mistrust) to disappear. It hasn't yet."

Gray echoed Mansell's comments. "I've got young people out here in our company who are still mad about the NEP but they don't know what the NEP's about," he said.

Peter Dyne, now chairman of the energy committee for the Consumers Association of Canada, worked in the federal Energy Department at the time the energy program was brought in.

"The original NEP document had very strong words in it," said Dyne. "It had a strong political driving force that big oil was the enemy and that Canada had to protect itself somehow from the interest of big oil."

Even today, you don't have to go far to find fear and loathing against the NEP in the oilpatch, especially now that Alberta is once again enjoying a boom brought on by high oil prices.

Every time there's any talk of bringing in an environmental tax on energy -- the so-called carbon tax -- Mansell said oil executives fear it's going to be the NEP all over again.

"People still talk about waiting for the other shoe to drop," he said.

The general conclusion of most economists, and not just in Alberta, is that the NEP "was unwise and didn't work and quite negative in its consequences," said Ted Chambers, of the Western Centre for Economic Research, based at the University of Alberta.

It didn't help that the early 1980s were also a time of sky-high interest rates that reached 20 per cent and inflation rates of up to 13 per cent. The poor economic conditions would plunge the entire country into a major recession in 1981-82.

Chambers suggested the general recession also contributed greatly to Alberta's misfortunes, and that Trudeau's government shouldn't have to shoulder all the blame.

However, Mansell maintained that if it wasn't for the NEP, Alberta would have experienced a mild recession instead of widespread misery.

"This is a period when people were walking away from their homes, they lost their jobs, couldn't pay the mortgage with high interest rates," said Mansell.

"The oil industry packed up. Resource development ground to a halt, drilling -- all those things that would be important in continuing the prosperity based on resource development came to an end."

The idea behind the NEP for consumers was that because Canada produced a significant amount of oil, it was possible somehow to control the price, said Dyne.

"At the time it was introduced, we had already gone through the first energy crisis with OPEC appearing and jacking the prices up from $4 a barrel to $10 barrel, which at that time was the end of the world," he said.

"The world has changed a lot. The main difference for consumers is today we have to realize we're part of the world economy and you can't have a Made In Canada price."

DanS is offline DanS
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I don't think the US would send tanks Alberta's way. Alberta might be able to join on a similar basis to what Texas did.

In any event, we have redistribution as well. It's just done differently and makes slightly more sense than the Canadian system, in that separatism was dealt with in another manner.

Last edited by DanS on 28-02-2005 at 21:19

Kuciwalker is offline Kuciwalker
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quote:
Originally posted by Agathon
quote:
Why is it so important to keep Quebec happy even at the expense of not getting to have even a modicum of fairness in disbursement of tax revenues?


Because Quebec leaving would cause all sorts of problems. The Quebecers don't want to leave anyway. They've had three chances and taken none of them.


Then what is this serious separatist threat?

 
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