Quote:
Originally Posted by Slava
I'm fine with the rates being competitive with others around the world actually; its not a place where we should look at a race to the bottom.
Jobs are almost always lagging coming out of a recession. In fact in almost every recession/recovery the recession ends and job losses don't level out for sometime after. Then it takes time for the job creation and re-hiring from the businesses.
The impacts of the corporate tax cut are murky in all of this. The Liberals throw around the number of $6 Billion....because thats the number that the CPC throws around to justify the said cuts. I don't think that its accurate for either case though....its likely half that figure or even smaller. So the programs that the Liberals want to cover here are going to be smaller than projected, and so is the impact that the CPC claims as a result of this tax cut.
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My 2 cents. I understand the theory of the trickle down effect, but in my opinion, it wouldn't make too much of a difference if we cut corporate tax rates. Looking at the OECD Tax database
http://www.oecd.org/document/60/0,33...rporateCaptial
Canada already has one of the lowest corporate tax rates as it is (only 3 other smaller countries including Switzerland are lower). In the G8, Canada has the lowest rates. Therefore, cutting a few more percentages really won't make that much of a difference for a company to do business in Canada. In my opinion, economic growth is also highly dependent on other criterias such as opportunities to connect with the US or China through Canada, the value of our currency, and our trade rules.