Quote:
Originally Posted by Regorium
My only issue reading this thread and following the discussion is why people are always so focused on corporate taxes. Raising corporate taxes have been shown to reduce total tax receipts in almost every single study that has been performed on it.
http://taxfoundation.org/article/gro...orate-tax-rate
http://www.budget.gov.ie/Budgets/201...orporation.pdf
http://www.nber.org/papers/w13756.pdf
http://www.oecd.org/tax/tax-policy/41000592.pdf
It's always a catch 22 with corporate taxes. The burden placed upon companies will always trickle down to people. If we raise corporate tax, Suncor lays off 1200 people instead of 1000. Suncor isn't "hurt" by it, they grow a bit slower, pay the same amount of tax to the government. But now, the government loses out on 200 people worth of income tax and consumption tax (if there was one).
I get the feeling that the decision not to raise corporate tax rustled a lot of jimmies, but frankly it is sound economic policy in our current environment. |
That's why a PST would have been better than the smattering of consumer taxes and user fees. It taxes everyone. What are these corporations going to do, go to another province without PST?