Sunday, March 27, 2011

Alberta Deficit Created By Auto Bail Out

Not only is the deficit in Alberta not about overspending on infrastructure, which had been put on a decade long hold as the result of the cuts and privatization of the Klein era, but because of royalty holidays to big oil and the corporate bail out of the Auto-Industry.

The final chapter in the stormy marriage and divorce of Daimler-Benz AG and Chrysler Corp. will provide a $1.5-billion (U.S.) windfall to the deficit-ridden federal, Ontario and Alberta governments.

Daimler AG as the maker of Mercedes-Benz cars is now known, will pay the three governments $1.5-billion to settle a dispute over 11 years of Chrysler taxes that began in the mid-1990s and lasted until Daimler unloaded the No. 3 Detroit auto maker in 2007.

The bailouts of Chrysler and General Motors Corp., which total about $12.7-billion, were partly responsible for the record-setting deficits the two governments racked up to fight the recession. Those governments are still fighting to stem the red ink.

The federal deficit for the April-December, 2010, period was $27.4-billion (Canadian). Ontario is on track to post a deficit of $18.7-billion in the fiscal year that ends March 31. Alberta, meanwhile, tabled a budget last week that forecasts a deficit of $3.4-billion for 2011-12.

So not only did Chrysler get tax breaks from the Liberal and Conservative Federal governments and then get bailed out but they avoided paying taxes for over a decade.

Corporations don't need tax breaks, they take them anyways whether you give them to them or not.

If a Canadian fails to pay their income tax over ten years they not only go to court they go to jail.

But not if they are a corporation.

2 comments:

wang li said...

So not justBuy RS Gold do Chrysler get taxes breaks within of the Liberal and Conservative Federal governments and be in a position to get bailed out however they avoided Sell Rs Goldshelling out taxes for over a decade.

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