There is apparently no shortage of politicians with a not-so-secret Hollywood love affair: they love to throw tax sweeteners and direct subsidies at the film industry, this in an effort to lure film production to their province or state.
The latest starry-eyed politician is the British Columbia opposition leader, Adrian Dix. In his run-up to that provinces May election, the B.C. NDP leader has promised to up the film tax credit for labour costs to 40 per cent, up from 35 per cent.
Throughout human history, men and women have struggled to tear themselves free from concentrated power and its ill effects. While many people in developed, democratic and capitalist countries often take their freedoms for granted, history is filled with tyrants and bullies who stand between citizens, their freedom and their prosperity.
Last weeks provincial budget was a heap of bad news for New Brunswickers. First they learned that they will continue to be burdened by a government with shaky finances driven by annual deficits and mushrooming debt. Topping that off, Progressive Conservative Finance Minister Blaine Higgs proposed a series of highly damaging tax increases as a way out of New Brunswicks deep fiscal hole. Unfortunately, these tax hikes will cast a dark cloud over New Brunswicks economic prospects and likely bring little revenue in return.
Michael Binnion, CEO of Questerre Energy and head of the Quebec Oil and Gas Association, has a great blog post up in which he discusses the impact that equalization payments have on Quebec's energy and natural resource policy.
Looking at Quebec's budget, Binnion observes:
With Ralph Kleins passing, many have tried to find a constant theme in his political life. The late premier was, to be sure, a populist. What else explains his reputation as a big spender when mayor of Calgary and then his switch to a prudent premier?
The explanation is not complicated: once the bills come due, even a populist politician will change course when the public sours on policy gimmicks, when they demand a government focus on the basics. That includes not bankrupting public finances or assuming taxpayers can be increasingly gouged to pay for political vote buying.
If there was a theme in the recent federal budget, it was how chock full it was with new corporate welfare. The underlying refrain was how big government will help big business with your tax dollars.
For example, early on in Budget 2013, it is clear that crony capitalism is scattered throughout the budget. On page six, Ottawa promises $1-billion to the aerospace sector over five years through the Strategic Aerospace and Defence Initiative; thats the main government program for disbursing taxpayer cash to the aerospace sector.
The key litmus test for the Harper governments 2013 budget was always going to be how realistic it was with respect to achieving a balanced budget by 2015-16. The governing Tories have staked both their economic and political credibility on being able to balance the budget. The current plan, which mirrors previous budgets, relies on controlling the growth in spending and hoping revenues increase sufficiently to balance the budget.
More than three years after the end of the recession and British Columbias provincial government continues to struggle with deficits, which as of the last quarterly update will likely exceed $1.5 billion. Relying on revenues to rebound enough to catch up with spending just doesnt work as BCs own history aptly demonstrates. Similarly, municipalities across the province continue to struggle to find sufficient resources for infrastructure needs while balancing their books.
For those who dont normally read budget documents, heres what the Alberta government just did in its 2013 budget: they abandoned the sensible budget and financial framework that former Progressive Conservative Finance Minister Jim Dinning introduced in 1993.
In 1987, the value of Albertas Heritage Savings and Trust Fund stood at $12.7 billion. That year, the province faced a massive budget deficit and transfers to the fund from resource revenues were suspended. Such deposits did not resume again until almost two decades later and only lasted two years before being suspended again.