There seems to be some confusion on the pro-big-oil whiners on the right over the difference between a royalty and a tax. Royalties are before tax payments and thus are tax deductible.
If Alberta collects its back due royalties, plus increases the royalty rate on resource extraction it will be a TAX BREAK for big oil. And it will reduce payments to that loathsome traditional enemy of the Alberta First right wing; Ottawa. The irony is delicious.
And it is also a provincial tax break. So quit yer whining and suck it up.
Royalty payments are tax deductible. Hiking Alberta's royalty take by $2 billion annually would shave as much as $400 million off Ottawa's revenue from petroleum producers (the federal corporate income tax rate runs about 20%) and $200 million off Alberta's own income tax proceeds.
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