Friday, October 12, 2007

“Deep” Corporate Tax Cuts: Bad Policy

The last thing Canada needs is “deep” corporate tax cuts. http://www.ctv.ca/servlet/ArticleNews/story/CTVNews/20071012/corporate_taxes_071012/20071012?hub=QPeriod
A small reduction, such as the one the Conservatives are suggesting, will do just fine thank you very much. The Canadian corporate earnings are higher than pretty much everywhere and cost of doing business in Canada is cheaper than in Britain, the US, Italy, Germany, Japan, France.

Even the timing of the announcement sucks. The lead Story tonight is bound to be Al Gore’s sharing the Nobel Price followed by the announcement of the Afghan advisory group.

6 comments:

A Quantum Liberal said...

You still here? Why?

Koby said...

tasty kool aid?

Anonymous said...

Dion is clutching at straws. Does he seriously believe that the average Canadian is going to be ga-ga over corporate tax cuts? Why would he pander to big business at this point? He needs to sway average Canadians.

Methinks Dion is adrift without a rudder.

God help the Liberal party.

Mushroom said...

This needs to be balanced on the money corporations will have to pay the federal government in buying carbon credits. Does this mean that a Dion government is handing out money to corporations with one hand while recycling it with the other?

Koby said...

I thought about that, but if that is the case, why not announce the two together. A corporate tax is bound to get a lot more publicity and a “deep” corporate tax cuts cuts the Conservatives most likley line of attack off at the knees. Anyway I thought Dion has already sworn off such a tax?

Koby said...

I still do not like the policy within the Canadian context. Corporate profits are a lot higher than pretty much any other country and benefits Canada companies dole out pales in comparison to what they do in other countries. For example, Canadians do not get anywhere near the amount of vacation days that Irish and Swedish employees get.

Anyway, Dion and company are sounding a lot more intelligent and thoughtful than they have been.

Dion all but short circuited Layton's most likely line of attack.

"Some will say that a cut in corporate taxes is a right wing policy. I’m sure my friend Jack Layton will say this. But to believe this is to believe that Sweden, with its low corporate tax rate, is the hot bed of neo-conservatism while the United States, with its very high corporate tax rate, is a socialist paradise – or to quote Stephen Harper when he described Canada – “a second tier socialistic country”. A low corporate tax rate is not a right wing policy or a left wing policy. It is a sound policy."