Join Date: Jul 2000
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Re: Damn the Walloons!
Decline of domestic business activity - just an opinion.
An economics argument would be, if the Canadian and American governments would not have imposed such draconian 'corporate taxes' upon manufacturers and other businesses that produce 'increased value' items, those applied taxes, etc. added to the 'price' wouldn't have left these businesses in such a competitive domestic and global market price point disadvantage. But then again, taxes applied to 'business' is only and entirely passed along to the ultimate consumer. So in functional reality the businesses pays NO taxes (ultimately, the consumer pays them); yet, the businesses slowly disappear due the competitive disadvantage that the corporate taxes impose upon the 'sale' price ... which includes all the 'pass alongs'.
Inother words, Canada - and more so the USA with a max. 45% corporate federal tax rate and mandated government 'overhead' charges such as 'payroll taxes' & compliance/regulatory, etc. costs - these businesses are increasingly removed from global competitive position (which also affects domestic competition - demand vs. supply of manufacturers) due to the increasingly added taxes vs. the rapidly dwindling manufacturing base.
Secondly, I really don't know about Canada; but, in the USA when one calculates ALL the applied taxes, mandates and regulatory, (+ pass along taxes / costs) against personal income ... 'total' combined government now seems to be approaching the 'taking' of 60-70% of total median/average income .... which includes the taxes 'passed along' and already included in the price of 'consumer' etc. items. Just take total GDP (per capita) divided by total combined govt.'revenue' (... plus 'govt. debt') as a good indicator.
My apolitical view is 'we' are now slowly eating the 'golden goose' that once supplied all the goodies. I make the assumption that this is one of the principal reasons in the apparent current downtrend of sailing, and most other 'disposable income' activities, as well as an increasing decline in the average 'standard of living'.
Id much rather prefer to buy 'local'; but increasingly, I can't afford it when 'imported stuff' is just as good and cheaper.