Tax increases could scare away industry


I am not going to talk about the four party debates, or about B.C. politics or, as a matter of fact, not even the City of Williams Lake.


I am not going to talk about the four party debates, or about B.C. politics or, as a matter of fact, not even the City of Williams Lake.

Right now the United States government is caught up in a debate about raising taxes. President Obama and the Democrats have taken a very strong stand explaining their justification and their perceived need to raise taxes. The Republicans have also taken a very strong stand against raising taxes.

As I consider the American tax issue, I have recently read that over 90 per cent of manufactured goods used in the United States are manufactured in some other world country.

In addition to political promises, every citizen at every level expects their government to provide increasing levels of services. So as the demand is made on government to provide for these ballooning services, the simplistic solution of government has been to raise taxes.

Every enterprise, big or small, reaches a point where increasing taxation, possibly coupled with intransigent labour unions, can be the straw that breaks the camel’s back.

With the experience of years and years of industries closing and leaving the country I can’t help but wonder why any level of government would be in any hurry to raise taxes.

Industry and enterprise in a democratic country are free to say enough is enough; they cannot be forced to stay in business if there are expectations that profitability cannot be met.

We can call these investors names, such as greedy and Scrooges. The bottom line is if an enterprise is not happy with the cards a government or union deals them, it is so much simpler to move your enterprise to a lower-cost environment.

When this happens, the result is that there becomes less taxable income from less taxable enterprise, and far less working people.

Regardless of the country, or bailiwick, any ill-conceived tax increase could represent short-term gain for possible long-term pain, with fewer taxable sources bearing the brunt of an ever-increasing tax burden.


Doug Wilson

Williams Lake

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