Quote:
Originally Posted by Slava
Well its not "jacking up the tax rates" to use your term. Its just not cutting the last cut that the CPC wants to. Frankly the rates have come down from about 23% in 2005 to 18% now IIRC. Any study that you find is going to be influenced by the party paying for the study.
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You're misinformed. It is a tax hike in every sense of the word, taxes in 2012 under the Liberal plan will move from the 2011 Corporate rate of 16.5% to 18%. From a corporate planning perspective you would have to erase 15% from 2012 and beyond in your model and plug in 18%. Business and spending decisions have been made on a 15% assumption. 18% changes the economics and will result is less spending in the economy, there's no arguing the direction of investment as a result of that decision, the only question is the magnitute.
The concept that taxes were 18% in 2010 and will be 18% in 2012 is kind of like using the Simpsons phrase 'temporary refund adjustment.' Because ultimately it's a hike from 15% to 18% in 2012 and a hike from 16.5% to 18% for 2011.