I’ve previously discussed how Finance Minister Joe Ceci’s fiscal update confirmed Alberta suffered losses totalling $900M which was more than the NDP projected and much of that was due to lower corporate tax revenues.
Minister Ceci’s explanation was that the Fort McMurray wildfires accounted for the majority of the deficit but that didn't add up.
I spoke with Paige MacPherson from the Canadian Taxpayers Federation about how this could be explained.
Paige points out that the loss in corporate tax revenues shows that increasing taxes doesn’t necessarily increase government revenue.
Additionally, as noted in this story detailing the debt servicing costs, it also means Albertans are being denied billions of dollars that could be better spent on necessities.
The only way to get rid of the province’s deficit is to reduce the NDP’s out of control spending, but it’s clear that this won't happen any time soon.
During his update, Joe Ceci refused to answer questions about spending ceilings, indicating that the sky is the limit for the NDP.