With the bad economic conditions we are currently under in North America, job losses are at an all time high, seeing unemployment numbers growing to be more than those of the early 1990's and 80's recessions. The unemployment rate increased from 6.6% to 7.2% in the month of January, which is about 129,000 lost jobs, totalling over 213,000 since October of 2008. This number has already surpassed the previous expectations by economists of 44,000 lost jobs, and who knows when this trend will slow down. BMO economists predict that by the end of 2009, the unemployment rate will have broken through the 8% barrier.
http://www.cbc.ca/money/story/2009/02/06/januaryjobs.html
These rates were obtained through the Labour Force Survey, which takes the number of unemployed workers in Canada, and divides the number of the labour force. Although some may see this unemployment incline as nothing more than a temporary issue, it has and will affect the many markets in North America. Consumer confidence and spending will be much lower, as potential customers would not want to spend their little amounts of cash on unnecessary products. This, in return, has and will continue to cause a very low cash flowed- quarter for most markets.
With the demand for workers getting lower and lower, there is bound to be some more lay offs to come. For those who own their own business, it is important to realize that because unemployment is high, products/ services being sold will be much lower in demand, equalling a very difficult quarter of operation for businesses. When it comes to working citizens, alternative jobs should be thought of, because job losses are at a very high rate, and to be more prepared for a lay off, it’s good to look at other options for your career. At this point in time, no single person is at an advantage, and struggle is as high as it can be.
Thursday, February 26, 2009
Tuesday, February 3, 2009
Economics 12- Article: N.B. Government Charts Plan with Deep Corporate Tax Cuts
With the economic troubles, some of Canada’s provincial governments have taken action on cutting certain taxes, and making an easier lifestyle for their citizens. One of these provinces is New brunswick. The government plans to cut corporate income tax to single digits, which would give them the lowest corporate tax level in Canada. A flat 10% income tax has been recommended by the Select Committee of Tax Reform, which would begin in 2009, and fully shape up to its full potential by 2012. With this, New Brunswick would have one of the best investment climates in Canada, claims Niels Veldhuis, the director of fiscal studies at the Fraser Institute.
The big picture here is taxes. With a decrease in income taxes from a non flat tax of a maximum of 18% to a flat tax of 10%, spreading the wealth among the province would be of major concern. Although this new tax would help out many working-class citizens in NB and increase the financial position of the province among Canada, a lot of people in need of extra health care may find it troubling that the lack of taxes paid by much wealthier people may not be able to cover their healthcare costs, as they once did. This system has been used by the US for years, and clearly, has not worked. There is a huge gap between the rich and the poor now, because the main goal of the Republican government in the past has been to keep taxes fairly low, which helped the rich get richer, but made the poor helpless in their financial needs. With the help of Barack Obama as president, their tax rates will soon become much more progressive, mirroring most of the provinces in Canada.
This new plan by NB, I believe, will not be beneficial to the province in the long run. Even though it will help out the province through this harsh economic time, government funds will be much lower, by 2011/2012. These funds could be used for better healthcare, funding for less fortunate families, and rebuilding certain areas in the province that need it. I believe the entire country should stick to one system only, which is progressional tax. Although I do not enjoy the thought of paying higher tax rates as income goes up, this system has been implemented for many years, and has been working since. So, why change a good thing?
http://www.cbc.ca/money/story/2008/12/17/nb-tax-reform.html
The big picture here is taxes. With a decrease in income taxes from a non flat tax of a maximum of 18% to a flat tax of 10%, spreading the wealth among the province would be of major concern. Although this new tax would help out many working-class citizens in NB and increase the financial position of the province among Canada, a lot of people in need of extra health care may find it troubling that the lack of taxes paid by much wealthier people may not be able to cover their healthcare costs, as they once did. This system has been used by the US for years, and clearly, has not worked. There is a huge gap between the rich and the poor now, because the main goal of the Republican government in the past has been to keep taxes fairly low, which helped the rich get richer, but made the poor helpless in their financial needs. With the help of Barack Obama as president, their tax rates will soon become much more progressive, mirroring most of the provinces in Canada.
This new plan by NB, I believe, will not be beneficial to the province in the long run. Even though it will help out the province through this harsh economic time, government funds will be much lower, by 2011/2012. These funds could be used for better healthcare, funding for less fortunate families, and rebuilding certain areas in the province that need it. I believe the entire country should stick to one system only, which is progressional tax. Although I do not enjoy the thought of paying higher tax rates as income goes up, this system has been implemented for many years, and has been working since. So, why change a good thing?
http://www.cbc.ca/money/story/2008/12/17/nb-tax-reform.html
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