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this post was submitted on 25 Sep 2025
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The $13B was production based tax credits. No one explains how government funding works, or the milestones.
Maybe instead of giving away tax credits, they should use those taxes to improve Canada Post...
Tax credits are not the same thing as cash. You can't "spend tax credits" on Canada post, the credits are there to bring the business in and give them credits based on the further income they bring to the country
If they didn't give out tax credits then they would receive that amount in taxes. From the government's point of view tax credits are a reduction in revenue.
I don't think 10% fewer tax credits would have made the difference of the factory being built or not. VW has plenty of money to pay taxes.
The whole point of the tax credits was to convince them to bring the business here in the first place.
Decrease the tax credits by 10%, sure. The business goes elsewhere to build their factory, what's 10% of $0?