StatsCan is reporting that rather than act as stimulus for job creation, as the Conservative Party claims, corporate tax cuts have merely allowed companies in Canada to pocket billions of dollars. Since 2000 the combined federal-provincial corporate tax rate in Canada has fallen from 42% to 28%. In the same period, business has added 83 billion dollars to their cash reserves. This is money that is not contributing to the economy, to investment, job creation or technological improvement. It is money that is lost to social programs, health care and other government initiatives that would see it invested in people. These statistics put the lie to Conservative claims that Corporate tax cuts benefit everyone. Clearly they only benefit the companies that receive them, bank them, and then came back to the public for more.
http://www.theglobeandmail.com/news/politics/corporate-tax-cuts-dont-spur-growth-analysis-reveals-as-election-pledges-fly/article1972599/
Wednesday, April 6, 2011
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