Monday, 4 November 2019

Wexit


This past weekend was a large demonstration in Edmonton in favor of what has become known as Wexit --- the interest in the four western provinces separating from the rest of Canada.  Or maybe the notion includes the western territories (such as Yukon) also. I read that there is a Wexit facebook group with about a quarter million members. I’d bet that a highly disproportionate number of them are from Alberta. I know that Peter Zeihan has long been speculating on Alberta joining the USA.


Extricating BC, Alberta, Saskatchewan, and Manitoba from Canada is not simple. First off, the political party that has the lion’s share of the western seats in parliament, the CPC, is not a separatist party. A strong separation movement would see the formation of probably multiple right of centre parties to wrest support from the Conservative Party of Canada. Methinks that would be a very daunting process. Further, there is the Clarity Act, a little known act of parliament that governs the process of separation.

There are numerous hurdles to be cleared, and the process would take years, during which time the separation sentiment could easily reverse.

If there was separation --- a new Republic of Western Canada --- how likely is it that these four provinces would hang together? In my opinion, Canada is the glue that ties the western provinces together. It’s called Confederation. The four, trying to go it alone, would likely have a falling out, with one or more seeking admission to the USA with all that entails: taxation of gains on sale of principal residences, occasional institution of the military draft of sons to be shipped off to foreign soil to protect the interests of multi-national companies with their lives, estate taxes, Trump (yeah, I think he’ll win the next election), and on and on.

I don’t dispute that decentralization of power is the tidal wave of the last few decades worldwide, but decentralization can be accomplished quite nicely by shifting areas of jurisdiction from Ottawa to the provincial capitals. Maybe it’s time to revisit the power distribution.

Monday, 28 October 2019

Philppa Gregory and the mid-1600s


I recently finished reading Virgin Earth by Philippa Gregory. It is a dramatized treatment of life in the last days of Charles I and during the Cromwell years. I have only ever known of the events of those days from a very high level: Charles was beheaded; Cromwell was a puritan and very harsh with the Irish; Charles II was a hedonist and tolerant of other beliefs. I know a lot more now. I found the book an engaging read.

Sunday, 27 October 2019

Alberta Eliminates Several Tax Credit Programs


I’ve been away and not bothering much with this blog. While I was away, the Alberta Budget was introduced. It contains big hits for technology developers.  

The Interactive Digital Media Tax Credit program is being eliminated.  It had barely been enacted. 

The Alberta SRED credit will be eliminated effective beginning next year. In other words, only expenses incurred prior to January 1, 2020 will be eligible for the Alberta SRED program. The Federal SRED program will still be available to Alberta companies, but the change means a significant reduction in benefits to Alberta companies doing SRED. 

The Investor Tax Credit program is terminated now. 

I have long said that the Alberta government has been short-sighted for decades: the season of petro wealth would end, as all seasons do. Alberta has needed to diversify its economy. In my opinion, what is driving the 21st century economy of the developed world is technology. Alberta needs to be a part of it. Abandoning tax credits that encourage tech development in Alberta seems a step in the wrong direction. Alberta has to compete with BC in the creation of a business and social environment that is friendly to tech developers, particularly when more people prefer the climate and landscapes of BC over those of Alberta than the other way around. 

Maybe Alberta will find other ways to enhance its attractiveness to tech development companies. The current government seems to think that lowering the corporation income tax rate will do the job, but lower income tax rates offer no appeal to companies that have yet to see their first dime of profit, and many tech developers are such companies.