Tax watchdog warns the GM closure is a sign governments shouldnt give

first_imgCALGARY (660 NEWS) – While some people in Alberta say the federal government should help out the oil and gas industry, the Canadian Taxpayers Federation (CTF) says the General Motors closure should act as a warning signal that corporate bailouts don’t work.CTF Federal Director Aaron Wudrick said while it is difficult to watch some major corporations struggle, that doesn’t mean the government should be picking which ones to invest in.“I certainly don’t blame folks in Alberta for saying ‘why will you bail out Bombardier? Why will you bailout the auto sector? But you won’t bailout the oilsands?’ I think the answer is that you can’t afford to bail anyone out.”He noted some of the regionalism that comes into play when corporations are bailed out in eastern Canada.“People rightfully start to get upset when they see one communities company getting saved, and then when something happens in their community there is no help, it strikes them as unfair. They are right, it is unfair.”When govts bail out Bombardier but not Blackberry; when they help automakers but not the oilsands; when they deem some companies worthy of taxpayer life support while letting others die; they are not just distorting our economy for the worse – they are sowing regional divisions.— Aaron Wudrick (@awudrick) November 26, 2018He is not, however, advocating for governments to do nothing about these layoffs.“I think it is entirely appropriate for governments to concern themselves with how do we help people who affected, but that is very different from bailing out the company.”He believes a few things could help the country.“What we can do is try and create business environments with streamlined regulations and lower taxes that attract all industries and have a level playing field,” he said. “You can look at ways to retrain people, you can look at ways to create an environment where you are confident that you are going to attract new work so that you are not so concerned about one particular company going under.”last_img read more