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As for GM, good riddance. Even if the Government hands out cash, I would never buy one of those bailout buggy's.
My younger brother came to town the other day driving his brand new 2009 Chevrolet pickup with a 4 cylinder engine that gives him over 30mpg on the highway. He bought it the same day GM filed for bankruptcy in the USA.
We drove around and saw the sites - seems like a nice enpugh vehicle if you must drive a pickup.
I notice Madoff was sentenced today for his Ponzi scheme. The U.S. gave him 150 years in prison. A 70 year old man they gave 150 years. Not to make light of the crime, but what are they thinking about?
The only way they will get 150 years from him is to call in a Taxidermist and stuff him when he passes away.
They gave a joke sentence for a serious crime.
To get the kind of ages they envision, you have to go back to biblical times. Methusalah, the bible tells us, lived 969 years (or thereabouts). An age of around 220, the total of his age and sentence, would put him 19th on the biblical list of the highest life spans.
I notice Madoff was sentenced today for his Ponzi scheme. The U.S. gave him 150 years in prison. A 70 year old man they gave 150 years. Not to make light of the crime, but what are they thinking about?
Well, but there is a fine old tradition in the USA of giving multi century sentences. But usually to the poor dregs of the earth rather than the fat cats at the top of course.
Mostly it's just another way of imposing a life sentence of course, but I believe it you check through the obscurities of USA law you will likely find it changes the parole availability.
I'm betting that with parole and time off for good behaviour that he won't serve a day over 100 years :)
I believe the rules are he will have to serve at least 85% of his sentence. His release date will be December 29, 2136, with good behaviour. Just in time for a New Year celebration.
I believe the rules are he will have to serve at least 85% of his sentence. His release date will be December 29, 2136, with good behaviour. Just in time for a New Year celebration.
Actually, his release date will be December 21, 2012.
Only the rushing is heard...
Onward flies the bird.
Our term of the day is "Carbon Tax". The B.C. carbon tax rises by 50% today. Right at the beginning of the summer tourist season they increase the cost of gasoline. Those politicians are smart like a bag of hockey pucks.
The part that concerns me isn't the price the folks who voted for that government pay for gasoline. What concerns me is the input costs companies whose shares I own in BC have to pay for natural gas and oil to produce their product. Maybe at least one should consider moving their processing plant out of B.C. into Alberta.
Our term of the day is "Carbon Tax". The B.C. carbon tax rises by 50% today. Right at the beginning of the summer tourist season they increase the cost of gasoline. Those politicians are smart like a bag of hockey pucks.
Well, but the folks who put it in were just re-elected, wheras the folks who promised to get rid of it were not. So I suggest it is now the responsibility of the voters.
Well, but the folks who put it in were just re-elected, wheras the folks who promised to get rid of it were not. So I suggest it is now the responsibility of the voters.
I think maybe the government should be reassessing that tax in consideration of the economy.
You only have to look next door to Alberta. Look at what happened when they changed the royalty formula. Drilling for oil and gas has pretty much dried up. I notice they recently made some changes to try to lure back the drillers. The percentage of drill rigs in use is something like 10% the last time I saw the figures.
I like sugar. I spent close to 4 decades on the distribution end of natural gas. Talking to the customers, maintaining and repairing their gas meters, etc. I serviced a couple of sugar plants. Redpath and Westcane Sugar. Westcane was bought by Lantic, I think. Lantic is now tied in with Rogers Sugar and I have shares of Rogers Sugar. A major input cost of producing sugar is natural gas. The ones I serviced used an awesome amount of natural gas.
The problem is this. A company which produces a product in B.C. has to be competitive with a company which produces the same product in Ontario which doesn't have the carbon tax.
There were a lot of companies I serviced over the years which wanted me to try to predict the cost of gas over the next year, which I declined to do. They set their prices for their products and widgets based on the input cost of the materials to make the product. If you can't make and sell something for as low or lower than the competition it's not good. Particularly when you take into consideration the price of what is being imported.
The pulp and paper industry is an example of competition. The U.S. is giving their companies tax credits for what they call "black liquor", which is ridiculous. It allows U.S. companies to basically dump their product on the markets at a low price. Canadian companies have a hard time competing in that kind of environment without similar tax breaks from our levels of government.
I've noticed when it comes to the free trade agreement the Americans appear to have the same regard for that as a cat has for marriage laws.
Wow! All that without trying to predict how low the AECO natural gas spot price will go. :)
Well, but the folks who put it in were just re-elected, wheras the folks who promised to get rid of it were not. So I suggest it is now the responsibility of the voters.
Hi Ed, I notice Catalyst only paid a small portion of their local tax bill in the four towns.
Now it seems other companies are taking a number and standing in line to dispute their taxes as well.
I can't see a speedy resolution to this. Maybe it's getting to be time to sell my shares and move on. I got them real cheap.
I'd figured they would have to shut down one mill in one of the towns and the rest would be enough for the decreased demand. Now I'm starting to think they might have to shut down 2 towns mills. I doubt demand for newsprint will pick up as newspapers appear to be having problems with circulation.
I notice some writers to the newspaper are suggesting waiting and selling the properties after enough time passes. The thing is, all they really get to sell is the vacant buildings, what's left of them. The owners have a right to remove the equipment. In other recessions, I noticed companies in this area which closed down an operation during a recession levelled the building to the ground. Less taxes on vacant land.
With these news stories circulating across Canada and the U.S. I don't know how B.C. will attract new industry.
It reminds me of Orwell's Animal Farm. Certainly an example of government greed.
Well, if the co-op I live in stopped paying it's taxes to the municipality a tax sale would follow and I'd be without living quarters.
Why should a large corporation be allowed any more leeway?
Quite simple, in the article it shows that they are paying far more % wise than what they consume. If the company can't afford the bill what would be a better option? go out of business and put all those people out of work? perhaps they should renegotiate with the union for wage concessions to pay their tax bill? Simply put governments have treated large businesses like this pulp mill like cash cows and have milked them dry.
Well, if the co-op I live in stopped paying it's taxes to the municipality a tax sale would follow and I'd be without living quarters.
Why should a large corporation be allowed any more leeway?
Your condo would probably be easier to sell and it's likely taxed at the residential rate. Not at 10 to over 20 times the residential rate.
The company paid taxes. Now a judge will have to rule if the rate being charged by the towns involved is reasonable. It may well be a judge will rule even the amount paid this year is too much and a refund is due.
Here's the formula for a BC tax sale, the way I understand it.
- The minimum bid is the sum of all of the outstanding taxes on the property plus penalties plus an additional 5% penalty plus land title fees.
They also have to add for any environment cleanup if there is any.
If there is no bid the towns will be deemed to have bought the properties.
Who do you suppose would want empty paper mills with no machines or other equipment and have to pay the high taxes on them?
I've never been in a BC paper mill. I took the tour of the Bowater paper mill in Corner Brook, Newfoundland some 30 or 40 years ago. Impressive. However, take out the machinery and other equipment and what's left?
The Americans are being subsidized by their government on pulp and paper. The "black liquor" tax break. They are basically dumping product. In Canada companies have to get their costs per tonne down to be competitive. That means tax and wage concessions among other things.
Your condo would probably be easier to sell and it's likely taxed at the residential rate. Not at 10 to over 20 times the residential rate.
I do not live in a Condo. I live in a coop, and it's not the same thing.
The company paid taxes. Now a judge will have to rule if the rate being charged by the towns involved is reasonable. It may well be a judge will rule even the amount paid this year is too much and a refund is due.
The company knew about the tax rate when they bought the mill, I believe. If they can't pay that rate then they can always seek protection under bankruptcy.
This year they have not in fact paid all the taxes levied. Why should they get any special concession?
The company knew about the tax rate when they bought the mill, I believe. If they can't pay that rate then they can always seek protection under bankruptcy.
No. A judge will decide. If the company doesn't like the decision I think an appeal is possible. This could drag on for years. I seem to recall a railway won a similar appeal some years ago.
If the towns can afford this kind of thing and the workers are satisfied with the layoffs, I say they should go for it!
Personally, I like Catalyst's chances in court. If I didn't I'd sell my shares and take my profits.
Do you live in one of the 4 towns in which they have a mill?
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