New U.S. tax rules and regulatory reforms are helping to lure capital investment away from Canada and to the United States, according to the Canadian Association of Petroleum Producers (CAPP), a leading industry association.
Tim McMillan, Chief Executive Officer of CAPP, said the sector is seeing companies, including Canadian firms, looking at allocating more capital dollars in the U.S. while investment in Canada is decreasing. In fact, Canada’s top energy customer is now its leading energy competitor, he said.
“That’s almost adding gasoline to a fire that’s already burning,” Mr. McMillan said of the recent U.S. tax reforms. “They are beating us on regulatory times. They are beating us on tax policy, on capital cost write offs. It is across the board.”
[…]
Calgary’s ARC Energy Research Institute expects the Canadian oil and gas industry to spend about five per cent less in 2018 than in 2017. Separate analysis of the U.S. sector predicts about a 40% increase in capital spending.
Then there’s the $400 million in new money earmarked to support Canada’s official languages — spending that will go down particularly well in the 25 or so swing ridings outside Quebec where more than one in five voters speaks French (constituencies like Ottawa-Orleans, St. Boniface in Winnipeg and a handful of francophone ridings in New Brunswick).
The Ministry of Finance projects budget balance by 2045.
By then we'll have racked up an additional $450 Billion in debt. #Budget2018
— Stephen Taylor (@stephen_taylor) February 28, 2018
h/t rald
Most of the multinationals are gone aside from the odd interest here and there. The big pipeline guys have shifted their energy and attention to other jurisdictions – both Enbridge’s Spectra deal and the continued rumblings about TCPL that they are planning on a name change and even a potential move. Juniors can’t raise any money on the equity side and the banks aren’t doing much of anything other than keeping their current clients afloat.
Hey, where’s that guy who used to tell us this was all great because the foreigners would leave Calgary? How’s that working out for him?
“the sector is seeing companies, including Canadian firms, looking at allocating more capital dollars in the U.S. while investment in Canada is decreasing”
Again, the USA wins and Canada loses! Liberals, NDP and Greens are dancing with joy! Mission accomplished!
Seriously, though, who in Canada (besides Liberals) actually gains by this? I suspect banks and pension funds in particular who are buying Canadian bonds to fund the deficits. And tax payers – that is, those who have jobs and income – will be paying the principal *plus interest* on those bonds. When Canadian debt is downgraded, interest rates go up, more tax revenue goes toward paying debt, and same banks and pension funds make more.
$2 billion to foreign aid, $178M for illegal border jumpers on the backs of farmers, doctors, small business owners and those who put long work hours or education years.
There is one more peculiar item in this “gender equal” budget, intersectionality. There is an opening to sue employers for discrimination even when a potential candidate does not meet qualification requirements for a position. Venezuela here we come!
Get this bit from the Baystreet story:
“Though controversial, the U.S. administration has introduced regulatory reforms aimed at spurring more growth in industrial activity.”
Though controversial? This is journalist-speak for I don’t like these facts.
Government by boutique social justice; except the poor of course. Sorry not enough votes.
CRA revs up for more collection from $45K care workers who dare to use their own car.
As yes, the mortgage helper tax, coming soon.
They ramp up spending, even more. All targeted to their pet causes.
Hello, the Canadian public just called, they want their limited government back.
Will the slumbering masses finally realize someone else wants to decide how their money is spent?
Canadians say they hate politicians because they lie. Unless they only tell the feel good freebie lie.
Canadians are lying to themselves. Burgeoning consumption debt with no war, financial crisis or recession?
Meanwhile aging boomers continue their logarithmic sapping of public pension and medical programs.
Meanwhile interest rates rise as retiring and sick boomers drain productivity and fuel inflation.
Some analyst actually agreed yesterday it’s a good time to borrow when interest rates are low.
I found that to be a distressing point of view. That depends on a lot of things.
For one thing, when interest rates are low, assets like realty tend to rise.
Nobody seems to notice higher interest rates on the horizon.
Debt service, at $25b, accounts for more than 100% of our federal deficit.
That means we are using debt to service debt. That can only accelerate debt formation.
Now we double whammy debt, more of it at higher interest. Harper was right about structural deficits.
PET in nominal terms ran up more debt than both world wars combined.
They went for decades servicing debt with debt. Now “they’re back!”
Mini Trudeau doesn’t have the advantage of young boomers coming into their best years, as his father did.
No, like his neo Marxist tendencies which he shares with his father, the boomers are in decline.
This is a known phenomenon at play right now, and this government wants to talk about gender parity and both parents going on parental leave. One fact above shows this cannot continue, yet it does, and we keep saying we hate it while voting for it.
Like most things socialist, this budget calls for tiling the ensuite bathroom with stones pulled from the foundation.
The Ministry of Finance projects budget balance by 2045.
Zero in Zero out.
I love how that forecast doesn’t even begin to talk about paying down that debt. At all. As though a balanced budget were sufficient unto itself.
this part: “adding gasoline to a fire”. and where did the gasoline come from? not Canuckistan !!
the rest of it is PURE LIEberalism.
this is all like an episode of ‘American Greed’. hint: it ISN’T just the scam artists the greedy ones. the *victims* are also too often lOOking for the elusive ‘lottery odds’ FAST BUCK.
the comparison here is the ones who vote for the nonsense, thinking *everyone else* will carry the financial burden for *their* freebies. and the LIEberals are the ones greedy for power.
sadly, Shamrock is spot on everything.
Anyways, I’m not worried. Andrew “Paris” Scheer is going to carve him a new one, right?
We’re doomed here in Canada …which is why as a dual citizen we’re in the process of leaving Ontario and relocating back to the southeastern U.S. I’m 70 and mostly retired (paid work of about 10 – 15 hours a week) and my income tax rate was 44% in Canada for 2016. Our U.S. tax guy in Atlanta calculates that for 2018 it will be between 18% and 21% depending to which of FL, GA, SC or NC we relocate …LESS THAN HALF the income tax on the SAME earnings. Don’t come back with a comment about “the free health care” because once you turn 65 Medicare in the U.S. is pretty much the same as Ontario’s OHIP but WITHOUT the waiting lists.
When the gov’t is planning on being in continual debt for the next 22 years, it’s easy to think of how much worse it will actually be.
It may be enough to push me into being an accelerationsist…
Anthony Furey on Twitter:
https://twitter.com/anthonyfurey/status/968614148048408576
This is a real line from #Budget2018: “men and boys also have gendered intersecting identities”. I swear I’m not making that up.
@Davers6: well done, brother, wish I could move to the US. American airborne liberated my grand dad from a PoW camp in Germany. At 6’4″ he had shrunk from 220lbs to 135lbs. God bless America. You will always hold a special place in my heart!
The hilarious part is that, as lousy as Canada’s budget is, it is still FAR more fiscally responsible than the Trump GOP budget. It’s not even in the same solar system. Their finances are a total wreck. Canada is still on a better overall trajectory.
Our politicians have lost their heads.
We may as well make it official and feed them through Madame Guillotine as our way of saying Thanks.
On the brightside, in a fully established Kleptocracy, crime is the ONLY career with a future.
No more crippling taxes,just take whatever you want.
No more regulation,regulators and idiot officials, just do it…of course you will be building nothing anyway anyway so yeah.
No worries about retaining your property, it was never yours to begin with.
And best of all no fear of the Cops or Courts..because as a professional bandit and destroyer, you are now a CLIENT.
Also any fines , property seizure, big deal they are actually stealing from your victims.
No intention of balancing the budget, ever.
And 60% of Canadians who vote are just fine with that.
There are no conservative parties in this country.
So who are the people who never vote?
There is a big chunk of us apparently, given the number who vote and the number deemed to be eligible to do so.
Maths is hard.
Stupid by choice is a tough life.
Blind trust goes good with mass hysteria.
Burn the Witch is next.
Shamrock – as one who has done taxes professionally for many years (as opposed to just doing taxes – I joke my spouse thinks I promised to “love, honour, and do income tax”), I would really like the source for your comment about CRA going after vehicle expenses for home support workers. Have already had rumblings that they’re really looking hard at ALL vehicle expenses, and demanding detailed logs. Which, by the way, I’ve always advised my clients to maintain.
These days, there are good apps for a smart phone which will keep track of mileage. Anyone can get them. MileIQ was at the most recent conference I attended, but there are others. Anyone having to track mileage needs to take a hard look at these.
BTW, I have also heard that CRA’s default position is to ask for back-up for a claim, and then deny same, no matter how good the data submitted. They hope thereby to adequately discourage taxpayers so they can claim they recovered lots of bucks. The solution is to pursue it to the next level of appeals; my information is that the workers in appeals have some degree of competency so they will actually judge the data submitted on its merits. Probably won’t be long before that particular avenue of regress is closed off; use it while you can.
Frances: “I would really like the source for your comment about CRA going after vehicle expenses for home support workers.”
No data just seeing more “requests for information” for employment expenses. I do taxes too and have advised my clients to tighten up their record keeping including vehicle logs.
I agree the intent of these requests for backing up claims of expenses is to deny them, no matter how detailed.