Policy Presentation Assignment
Subject: Should the government reduce corporate taxes?
Successive federal governments promised that companies would create jobs if corporate taxes were reduced. From 2000 to 2011 the corporate tax rate was slashed from 28% to 16.5%. As of January 1, 2012 it fell another 1.5% to 15%. What's been the value to Canadians?
A major CLC study "What did Corporate Tax Cuts Deliver?" shows that big businesses aren't creating jobs, investing in equipment, machinery or developing the skills of their workers. What corporations are doing is hoarding cash, paying out increased dividends to shareholders, and beefing up CEO paycheques.
Big businesses are now sitting on $500 billion in cash assets. But Canadians are paying the price. To fund the corporate tax giveaways, the federal government is borrowing money and cutting back on the public services Canadians need - like food inspection, or staff to deal with Employment Insurance claims from workers who have lost their jobs.
Let Finance Minister Jim Flaherty know he's got his priorities for the next budget all wrong. Instead of cutting the public services Canadians need, make big businesses give us back our money. Instead of job-destroying cuts, reverse the corporate tax giveaways.
More tax cuts to corporations is simply the wrong priority for Canada when our economic recovery has ground to a halt.…