Corporate Tax Cuts in Canada are a GOOD THING!

[Soundguy77]

It's not a pull between corporations and workers, government spending is the 3rd factor that socialists seem to forget. The answer is spending less money, not taking more away from the wealthy.

[Soundguy77]

@kidoman - You've got it backwards. Supply is what grows an economy, not demand. Everyone in Etheopia would love to have an iPhone (demand), but they can't be sold (supplied) to them for a low enough cost to grow their economy. Demand is great, but if my kids got all they demanded I'd be broke (like the USA).

Corporate tax breaks are a GOOD thing. The point you are all missing is government spending is creating too great of a drain on resources. It's not a pull between corporations and worke

[KidOmniMan]

Corporations don't spend money just because they have money and giving them more isn't going to make them spend on things they can't profit from. If there is a demand for tin whistles a corporation will manufacture and sell whistles because they can profit from it, tax rates don't really factor in to that decision. Lower rates will make us more competitive to make whistles but we are already competing with Chinese workers that work for pennies a day, we can't beat that even if we charge 0%.

[KidOmniMan]

I I can make a million dollars making whistles in Canada but they will tax me 50%, I'm still going to do it because I still make money, If making them elsewhere is more profitable I will do it there which is why free trade doesn't work so well for Canadian workers, we used to have tariffs to encourage companies to manufacture here and it used to work making Canadian labour more competitive for the Canadian market. Supply side economics doesn't work or else we wouldn't have unemployment so high.

[KidOmniMan]

This is the supply side economics versus demand side economics. Reagan started supply side in the 80's in the States and it hasn't been working for 30 years, where are the jobs? It's a nice idea, give corporations money to invest except that Corporations have enough money to invest, they aren't poor at all and can even borrow money if they have a good investment for it. The economy needs money in the pockets of consumers to create demand and that creates jobs, not the other way around.

[KidOmniMan]

This is the supply side economics versus demand side economics. Reagan started supply side in the 80's in the States and it hasn't been working for 30 years, where are the jobs? It's a nice idea, give corporations money to invest except that Corporations have enough money to invest, they aren't poor at all and can even borrow money if they have a good investment for it. The economy needs money in the pockets of consumers to create demand and that creates jobs, not the other way around.

[KidOmniMan]

@KidOmniMan If we make workers pick up the bill for taxes, it decreases the demand for goods and services by giving consumers less to spend, this creates workers that aren't profitable because no one buys the services anymore causing layoffs and further decreases in demand. The economy slowly eats itself and if you let all the jobs go to India with free trade, we won't manufacture anything here anymore. Canadians can not compete with Indian or Chinese labour for costs.

[YoeyFu]

I think the problem is you (so called economists) make these ridiculous leaps in logic. It's true that cutting corporate taxes will give corporations more money, with which they COULD make investments resulting in new jobs. They could also use that extra money to pay CEOs ridiculous amounts, or pay dividends, or invest the money somewhere else.

[YoeyFu]

It's a theory (and a bad one at that) that cutting corporate tax will result in more spending/investment by corps which will create jobs.

Challenge: Plot corporate tax rate, and # of employed people. If the theory is true, you'd expect to see jumps in employment when the corporate tax rate is reduced. This is not observed... sure there are all kinds of factors in play but there's no good reason to believe this theory is true.

[xexixk]

They haven't been such a great thing here in the US. Some corporations have been let off of the tax hook altogether and thing as still horrible despite the rosy outlook the government tries to put on things and their tricks for making the unemployment numbers look better than they are. All that is happening is the middle and working classes are getting squeezed even more and the people at the very top who can more than afford to make sacrices are not being forced to do so. *cont*

[xexixk]

All the while corporations are raking in huge profits and continuing to outsource jobs.

[uTor88]

The point is that the Harper government is choosing to do this at a time where the deficit is high, and coming from an unpopular federal government who continuously cuts social programs and funding, we're already competitive on corporate tax rates, therefore WHY should we have to borrow money in order to provide these cuts to corporations. How about focusing on figuring out how to provide adequate health care to an aging population, and making post-secondary education a right, not a privilege?

[Alcan196]

@uTor88 lol and a year later they have a majority totally unpopular

[uTor88]

@Alcan196 When getting 39.6% of the votes gives you a majority government, you know the electoral system is FUCKED. The majority of Canadians voted against a Conservative government, or didn't vote at all.