- Reaction score
- 35
- Points
- 560
Sorry K; I lived in Alberta when the monopoly ended, and not only did we see a drop in prices and an increase in selection, but the government was raking in about the same revenues as before. Sometimes you really can make it up in volume.
Incidentally, that is why tax cuts work. People who can keep more of what they earn are motivated to earn more. People with more money in their pockets can spend more, save more and invest more. Business can borrow that saved money (or get equity investments) to expand to meet the rising market. Each step increases economic activity, resulting in more revenues. Arthur Laffer knows this, John F Kennedy and Calvin Coolidge knew this (their tax cuts ushered in the Roaring 20's and the Go Go 60's) and Eastern European nations freed from the Soviet Union adopted flat tax systems to take advantage of this.
Sadly Dalton McGuinty and his cabinet do not know this (including Premier Designate Wynne), which explains a lot of what has happened in the last 9 years.
Incidentally, that is why tax cuts work. People who can keep more of what they earn are motivated to earn more. People with more money in their pockets can spend more, save more and invest more. Business can borrow that saved money (or get equity investments) to expand to meet the rising market. Each step increases economic activity, resulting in more revenues. Arthur Laffer knows this, John F Kennedy and Calvin Coolidge knew this (their tax cuts ushered in the Roaring 20's and the Go Go 60's) and Eastern European nations freed from the Soviet Union adopted flat tax systems to take advantage of this.
Sadly Dalton McGuinty and his cabinet do not know this (including Premier Designate Wynne), which explains a lot of what has happened in the last 9 years.