Saturday, January 08, 2011

Stupid Tax Cuts

The Conservatives want to continue the tax breaks to wealthy corporations in the next budget. This is outright unacceptable. When Canada has a pretty large deficit, one of the first things to cut is giving money to companies that already make billions of dollars in profit each year. These multinationals do not need help getting along. What we should be doing instead is giving out grants to innovators and environmentally-friendly businesses. This promotes new technology and respect for the earth, unlike the Tories' plan, which gives out money based on whether your business is a large corporation or not. If Harper decides to include this waste of money in the budget, the opposition parties should defeat him
But based on discussions with Flaherty in December, Brison said he felt the government was not willing to part with the final round of corporate tax cuts "that we can't afford and we don't need."
 "We want to see the budget first, but we're not that hopeful," he said.
Read more: http://www.cbc.ca/politics/story/2011/01/07/politics-liberals-tories-budget.html
Enhanced by Zemanta

12 comments:

  1. The stupid part is that a multi-national takes its money out of the country. You could give tax cuts to all sorts of businesses in the form of specific grants that would apply to development activities that take place in Canada.
    Innovators and Green businesses can be favoured as can small vs. large businesses.
    Unfortunately, it takes thought to set up and requires more than 3 words to describe.
    "Cut business taxes" doesn't.

    ReplyDelete
  2. Liberals have a messaging problem in Ontario on this file.
    Federal Liberal Scott Brison on corporate tax cuts "... we can't afford and we don't need."

    Dwight Duncan Ontario Fin Minister on the Ontario NDP plan to reverse corporate tax cut “It is about the most short-sighted, dumb public policy pronouncement one can envision.”

    In Ontario there are fixed election dates so the 2011 campaign has already started and the Provincial Liberals on campaigning on a position that is the same as the Federal Tories. That is a big problem for the Federal Liberals in the province of Ontario.

    ReplyDelete
  3. Raising business taxes right now is a pathetic excuse of a plan. No one in their right mind could seriously believe this will help us out of the recovery. We're barely competitive now with our business tax rates, raising them would be economic suicide.

    ReplyDelete
  4. Most Canadians should have RRSP's. Our retirement plans are heavily invested in the companies you accuse of simply being wealthy.

    It is extremely short sighted to squeeze more taxes out of big business at a time when families savings are being eroded.Don't sell our future for a cheap political stunt now.

    ReplyDelete
  5. I compleatly aggree with that last statement! Over 1 million families in Canada alone have there retirement invested in there company. I think that youe out look on life, on A "GREEN UTOPIA" is blinding you from the real wolrd.

    To say it in simple terms there is 1 law in this world. "Cause and effect" or better known as "With every action there is an equal and opposite reaction". Firstly with there tax cuts these big companies can then export and import more and more for less caust, this will allow them to make a bigger profit, to improve the company and give bonus's to the employs which plenty of families rely on.

    Now if you take off the tax cuts it is technically increasing the tax. so they will earn less profit, and so something will have to give. The big millionaire owners will not loose income to themself and there company. The employ's and there pay will have to be lessen to keep up with the current flow. Of course this is not the "just way" BUT it will be what happens sadly. There a million of negative consequences that could occur becuase of such action. I hope in the future you will think of what WILL REALISTICALLY HAPPEN AND NOT WHAT SHOULD HAPPEN!

    ReplyDelete
  6. Anonymous 11:45 giving tax breaks to big corporations that can afford it doesn't make much sense. Our Government should help small business and environmentally friendly business not these big corporate companies. The economy won't suffer if we give these grants to small business instead of the big corporations.

    ReplyDelete
  7. it is easy to say corporate tax cuts are bad - except the facts don't back that up:

    "Mr. Flaherty’s corporate tax cuts are already paying off – for the government. In its most recent fiscal update, the Finance Department reported in October that corporate tax revenues had increased, year over year, by 3 per cent – notwithstanding lower corporate earnings and Mr. Flaherty’s incremental corporate tax cut a year ago. With receipts at $30.3-billion, corporate tax revenues were running 8 per cent ahead of the government’s expectations. Interestingly, corporate tax revenues in this 12-month period precisely equalled the average of the previous nine years: $30.3-billion.

    Although still below the historic high (set in 2008 at $40-billion), corporate tax revenues are higher now than they were before Mr. Flaherty’s rate cuts. In 2002, with much higher rates, corporate revenues reached $24.2-billion; in 2003, $22.2-billion; in 2004, $27.4-billion; in 2005, 29.9-billion. More importantly, corporate tax revenues are carrying as much of the country’s tax burden as they did when rates were higher: Corporate tax revenues in the past decade averaged 12.6 per cent of the government’s income; in 2010, it provided 13.9 per cent."

    Source:

    http://www.theglobeandmail.com/report-on-business/commentary/neil-reynolds/proof-is-in-the-numbers-for-flahertys-corporate-tax-cuts/article1857742/

    In other words, by lowering tax rates, the government can pull in more tax revenue, while also attracting more businesses to set up shop in Canada.

    I know it is "hot" to attack these tax cuts because they are being done by the Tories, but the program was started by Paul Martin and the Liberals - it is simply smart policy.

    ReplyDelete
  8. True Anonymous reducing corporate taxes is a good thing for the economy like how many tax reduction are on the economy, but when Canada's has a fiscal deficit it is time to freeze corporate tax to where they are until the country can actually afford to give big business tax cuts. The fact is small business deserve the tax cut not the big companies. Small business help the economy they should get the grants and tax reduction the big companies should stay with there already low tax rate that is in fact the lowest in the G8. I say no tax reduction for big corporations till the country is in surplus which is what the Liberals had and they were able to afford it.

    ReplyDelete
  9. Vanillaman, nice talking point, but you again miss the facts - by reducing the rate, the amount of revenue goes up(see article I linked to), so it actually will have a greater effect on reducing the deficit. The fact is the right thing is being done - the US will soon be dropping their corporate rates as well, so we need the advantage while we can get it.

    ReplyDelete
  10. But wouldn't shifting the tax breaks to small, innovative and environmentally-friendly businesses have the same effect? That would enrich the economy where we want it. I don't propose completely raising corporate tax, just a shift of where we give breaks.

    ReplyDelete
  11. Freezing the taxes would be one thing, you're advocating raising the corporate tax rate. You might have a hate on for big business, but our corporate tax break WITH the recent cuts is barely competitive. I don't give two $h1ts about your left-greeny grants, the first step is to have competitive taxes and we're barely there with our current corporate tax rates. Raise them and in the long run you won't have more money, you'll have less!

    ReplyDelete
  12. By the way, in addition to the cross-hairs the Sarah Palin site stated, in putting these politicians on her target list, "Don't Retreat, Instead - RELOAD!" It was shameful.

    ReplyDelete

Any highly offensive matter will be deleted whether it be solid, water, gas or plasma. No comments from outsiders represent the opinions of Owner and Doggy or vanillaman. We reserve the right to delete any comments without explanation.