Attracting private equity investments
This one'll get the statist a-hatin', I'll wager. Doesn't take much to set 'em off, especially in a province where the government-knows-best crowd is truly infixed, but it never ceases to be entertaining. Oh btw, great article Ellen!
4 Comments:
I'm quite surprised that there was little talk in the final report on self-sufficiency about business angels providing equity capital to entrepreneurs.
It appears as though these guys around Graham are willing to punish small business with their promotion of unfriendly tax policies. And judging by Francis McGuire's comments in the Telegraph Journal, they only regard business as an entity which brings in more revenue through high taxes:
"I think people have to realize that this is the biggest single industry in the province, this is the biggest single generator of taxes," he said.
"People say 'I feel sorry for the people in Miramichi' - don't forget we just lost a whole big bunch of taxpayers that are contributing very significantly so we are all very directly affected.
I think it's high time that McGuire and Graham started respecting taxpayers, corporations and small business alike. They should reduce the burden on these industries instead of taxing them right out of the province. In the end, as McGuire said, you're left with no business paying taxes.
Take your pick fellas, do you want a few Liberal friendly business paying high taxes or do you want many non-partisan businesses paying much lower taxes? Sorry for the rhetorical question, but the latter will never happen until the money unloaded on business sibsidies is relocated towards more tax relief.
It's right there in the constitution, section 92:
Direct Taxation within the province in order to the raising of Revenue for Provincial Purposes.
Thx for droppin' by, Ellen. Not sure if you are the same Ellen who is an associate professor at the Sobeys school of business?
Anyway, I couldn't agree with you more regarding your comment. As I've said all along the function of private capital markets is to direct investment to projects, industries or firms that offer the most return. Angel investors, on average, usually know where the best investments are because they're usually business owners or former bunsiness owners of successfully run organizations.
On the contrary, not only is it damaging to place this responsibility in hands of government bureaucrats with little or no knowledge of private industry, it is also an ill advised notion for governments to believe that private investment can be replaced or mimicked through government intervention.
As the saying goes, "governments don't pick winners, losers pick government".
Anonynmous: you're correct.
Nope. Not that one.
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