An Empirical Study of the Saskatchewan Potash Reserve Tax

This paper explores the financial impact of the initial version of the Saskatchewan Potash Reserve Tax; first, a one; and second, in conjunction with the other taxes affecting the industry's profitability. A though the introduction of the Reserve Tax is shown to lead to a substantia increase in a hypothetical firm's effective tax burden, the more unusual outcomes frequently attributed to this levy on y occur after the imposition of other non-provincial tax rulings. Despite this qualification, the results obtained suggest that the Reserve Tax undoubted y acted as a catalyst in the polarization of attitudes during the ear y period of industry/government confrontation