Corporate tax cuts don't spur growth,
analysis reveals as election pledges fly
KAREN HOWLETT
From Wednesday's Globe and Mail
Canadian companies have added tens of billions of dollars to their stockpiles of cash at a time when tax cuts are supposed to be encouraging them to plow more money into their businesses.Well, suck me dry and call me "Dusty!" You mean to tell me that supply-side economics - the notion that if you give tax breaks to rich people and corporations they will use it to create more wealth for all - is bullshit? That what really happens when you give rich people and corporations a tax break is that they pocket the money? No! That's, that's...unpossible!
Jim Flaherty, the Harper government’s Finance Minister, acknowledged in a telephone interview that corporate tax cuts are a tough sell when companies are still hoarding cash. But over the long term, he said, his “comfort zone” comes from the fact that business leaders and economists have widely endorsed tax cuts as a job creation tool.
“Most importantly,” he said, “it’s a confidence builder in Canada, and it’s a way of branding Canada.”
Ah yes, branding. You know, where they take a red hot piece of metal and burn the owner's mark into the hindquarters of a bull that has had its balls cut off and is being fattened for slaughter.
Crossposted from The Woodshed
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6 comments:
Nice post, "Dusty" . . . . ;-)
Bravo Rev!
Flaherty's words:
“Most importantly,” he said, “it’s a confidence builder in Canada, and it’s a way of branding Canada.”
That's code for attracting foreign investors, like Vale buying out INCO in Thompson, Manitoba and then slashing jobs. Stock prices get a short-term bump and all is well with those wealthy enough to play and live by the stock market. Jobs, infrastructure, health care be damned. It's about wealth creation for that 1-4% at the top.
The best description of supply-side economics I ever heard came from Bob Fiore: "It's the theory that if you give rich people enough money, eventually they'll have to hire some poor people to help them carry it around."
40%!!! Forty F'in Percent is the tax rate corporations pay in Japan. And they agreed not to accept a decrease this spring to help the country because of the Earthquake/Tsunami.
And Mr Harper's lacky Jim Flaherty wants to reduce Canada's to 13.5%. Not that many of these dickwads even pay the current Corporate rate what with offshore tax havens and constant deferral of taxes from this year into the unknown future.
40%!
Can't share this on Facebook because "blah blah blah abusive". WTF?
This is quite interesting, and not at all surprising to small "l" liberals, or anybody else that's been paying attention these last few years.
It reminded me of the excellent post at Seeing The Forest called Businesses do not create jobs.
It's a little simplistic, but makes some very good points about using tax cuts as incentives to get business to hire people.
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