DON'T BE FOOLED!!!!
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by Petz
As many of you have probably noticed, a tax change law is about to be passed that will lower the import tax on food from 99% to 35%. The discussion on this tax change was started by Jacobi and presents itself under the false pretense that it is being done in order to lower the cost of food for eCanadians to help them out. DO NOT BE FOOLED!!!! This is just another attempt by Jacobi to kill more of our industries.
A few weeks back, Jacobi wanted to kill off the grain industry in the scandal that became graingate. Due to outrage the attempt was kill and Chucky was forced to deal with the consequences of such an idiotic move. Well now, Jacobi has attacked the industry that directly influences the grain industry. As the discussion in open congress states, there may be a slight reduction in the cost of some q levels of food (and even the chance of an increase for q4 which Jacobi's company makes) but really do we gain as much from this change as we will lose.
First, as foreign competition expands due to such a decrease in import tax, Canadian companies will be forced to start dropping prices in order to move stock. This will then be followed by wage decreases for workers in the food industry as employers attempt to keep the books balanced.
As more foreign food enters the markets, owners will begin looking for other ways to cut costs in order to stay open. That means they will need the cost of their materials to go down. Grain companies will be forced to either drop prices or see more than a few food companies shut down. When the grain companies are forced to drop prices for grain, the wages in that industry will have to go down as well in order for grain companies to stay afloat.
Since wages in eCanada in the land sector are not that low due to wages paid in the other land sectors, grain companies will begin to see a shortage of workers as they leave because of the wage cuts.
So, in fact, by proposing this tax change, Jacobi has initiated a course of events that will lead to accomplishing what his true intentions are; to effectively kill off the grain industry in our country. Do Not Be Fooled by propaganda that tells you that this change will save you a dime on your next food purchase as you are about to lose more than that.
For those workers in other land or manufacturing industries that do not think this will hurt your wage. You are wrong. As grain companies and food companies start to struggle and are forced to close, those employees will be forced to find other jobs. This influx of new employees into other land or manufacturing industries will mean that employers will not have to fight for your work or need to offer you wages that you currently experiencing.
The tax change will pass as it has already 21 votes in favor but as this vicious cycle starts, remember who started this and make sure that this is the last vote they win. When the next congressional elections come around, pick someone who supports eCanadian companies and make sure you tell Jacobi that it is time he stops throwing them under the bus.
Petz
CEO Petz Inc & Petz Inc Q2
Proud Owner of eCanadian Companies that use eCanadian resources!!!
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Comments
My time here in eRep has seen almost every nuance of tax scheme employed, based of various economic theories. Nothing seems to have accomplished anything (or very little) as each tax change seems to undue what the previous tax rates had done (or tried to).
I am somewhat sympathetic towards the lower import taxes, but ONLY if it is paired with a lower CAD. So long as other countries can produce food on a cheaper GOLD wage (because of a weaker currency), then on an open Canadian market, they will always be able to sell it cheaper than we can. High CAD demands high import taxes; if we want cheaper prices, but prices that are competitive with other nations who have cheaper currencies, we too, must have a cheaper currency.
if i hear the term "thrown under teh bus" one more time I am going to kill the person who coined it
Voted.
And Petz is right. We are basically allowing unfettered foreign competition in the Canadian food industry, and killing off Canadian businesses and the jobs that go with them. Kiss your salaries goodbye, manufacturing workers.
Has anyone checked what the import tariff is in the Polish food industry for example? 99%
Citizen B
The Person who coined the term was Velvet Jones, a Pimp from Somewhere in Atlanta. You see, he had this "lady" who was a little "larger" then normal, whom he called "The Bus", and all the fellas down there like a little "junk in the trunk". So he started a service where he would slide them under the "large" lady so they could get "serviced". He started using the term form the "johns" who got "serviced" by saying they were "Thrown under the Bus"
And now you know the rest of the story...
P. Magee
Canadian food prices are falling - Canadian food producers are reverting to traditional form and beating the hell out of each other - we don't need foreigners to help.
Free trade needs to be reciprocated by other countries (they won't), otherwise we're just suckers to give our manufactured goods markets away without gaining access to other markets in return.
You're all talking as if food owners are having problems which they're not. The only problem is the crazy high grain prices in Canada which force us to shop on the black market. Unless you're paying your workers slave wages, you throw your profits out the window when buying Canadian grain.
"crazy high grain prices"
Ace, have another look. I've been selling grain in Canada for close to a year now. Grain prices are actually ridiculously low. But, it won't matter anymore. Your friend Jacobi and quite a number of Congress, foolishly supported this proposal which will like see your business and quite a few other Canadian food businesses go under permanently. Smart move. Remember that when you vote next Congress elections.
Citizen B
Citizen B
On paper the prices are "low", but when it comes to competing as a company, Canadian grain is overpriced. I never see Canadian grain companies on the raw material lists when shopping internationally.
And lower import taxes don't necessarily mean foreign penetration, its the Canadian business owners themselves who start making sure their prices are low when import taxes go up.
When you read this remember: Jacobi is a food company owner
a q4 owner who by your own admission would see an increase in price