- January 03, 2012 - 11:20
Ms. Payne once again has some key facts wrong. When she says Canada's corporate tax rate is one of the lowest in the world, she is talking about only the federal corporate tax. When you include provincial corporate taxes, Canada's total corporate tax rate is in line with the OECD average. She also mentions the Parliamentary Budget officer's prediction that the federal government will lose money by cutting the corporate tax rate, but she fails to mention that corporate tax revenues collected by the federal government have actually gone up every year since the Conservatives took office. That's because the lower corporate tax rate is more than offset by increased corporate activity stimulated by the government's low tax policy. To understand why this works, I encourage Ms. Payne, and Telegram readers, to look up a universally accepted economic principle called the "Laffer Curve."
- January 03, 2012 - 22:51
The "Laffer Curve" is NOT universally accepted, and is called the "laugher curve" at the "joke" that paying less taxes means businesses will eventually pay more taxes. The whole point of the article is that all the tax breaks given to the big corporations has been hoarded as cash, not re-invested in re-tooling factories, doing research and development, etc.
- January 04, 2012 - 13:19
When I said the Laffer Curve is universally accepted, I meant it is accepted by all economists -- I realize it will never be accepted by union activists like Ms. Payne. The Laffer Curve does not suggest that cutting tax rates always increases tax revenues, but it does demonstrate that there is an optimal tax rate, and increasing rates beyond that point lowers tax revenues. The proof of the pudding is in the eating -- corporate tax revenues collected by the federal government have risen by billions of dollars each year as the federal government has cut the corporate tax rate. Corporations choose to pay taxes here in Canada instead of elsewhere. In the short term, they can do this by using accounting methods to shift their profits on paper to Canada. But in the medium to long term, they will also shift their operations here, creating jobs for Canadians. It is also important to note that Canada's current unemployment rate of just over 7% is low compared to our historical average. To put it in perspective, unemployment in Canada was in the double digits for much of the 1990s, even though there was no recession!
- January 02, 2012 - 09:59
Harper doesn't care about the Canadian people. I've been saying this for years. Now you have your proof.
- Have a Happy Humbug New Year Mike In Ontario
- January 02, 2012 - 08:50
And, Oh yes Mike In Ontario, your wealth was probably created because the province of Newfoundland and Labrador has been forced under a Centralist governed Canada to ship off all of its natural resources to your area in the Raw State to create vibrant economies for the past 62 years. If what you say is true Mike, you appear to be the Scrooge of Canada, 158 years after the Scrooge Character of the London Workhouse days melted into oblivion. You have a Happy Humbug Year Mike that is if you can live with your conscience!
- mike in Ontario
- January 02, 2012 - 12:00
I will have a happy new year. I have made lots of extra money this year that will benefit myself and my family. Yes, I have put people out of work to increase my profits, but I can live with that because it translates to more for my family. At the end of the day, family comes first, family is important, whereas my workers are just tool, to be used and disposed of as necessary. Honestly, it does make me feel bad sometimes, but those feelings go away when I see how my cut-throat, ruthless decisions benefit my family. Again, it comes down to putting family first. Chantal: I have actually looked into prison labour and there are still too many rules/regulations that make it an unatttractive option. Offshoring leads to more profits overall when you factor in the lower tax rate, lower wages and most importantly the tax (corporate and property) holiday's that US governments are giving to companies who move jobs to the US.
- January 02, 2012 - 08:15
Mike, have you considered looking into prison labour? It's even cheaper than China and you know those greedy union bosses can't get to them. God bless you and your shareholoders.
- Canada II
- January 01, 2012 - 22:42
Aww, why is everyone picking on those poor, defenseless, out for the best interests of the public, environmentally conscientious, corporations? They are such a force for good in our world...
- Canada has Terminal Cancer... Harpernoma
- January 01, 2012 - 18:35
Using his power to hurt UN-wealthy Canadians and reforming Canada into a fascist-designed and operated continental resort for the wealthy and morally deranged... everyone else is, or ought to be, a ('grateful') indentured slave or locked up in a prison. Real special things you got growing in Canada Harper, almost as useful as cancer.
- January 04, 2012 - 13:34
Regardless of your personal partisan bias, it is beyond the pale to compare Canada's government, or for that matter any mainstream political party in this country, to fascists. Canadians of all political stripes - including many who support the Harper government - struggled, suffered and died to defeat fascism in WW2. If you want to criticize someone, try giving reasons and examples instead of just throwing around such disgusting and frankly stupid rhetoric.
- David Goldstein
- January 01, 2012 - 17:01
Hack job: “What is becoming clearer and clearer is, despite billions and billions in tax breaks, corporate Canada, for the most part, is not creating the jobs it could be, not spending on capital investment or raising wages.” • It is very easy to type this out, but how about some hard cold numbers? • Harper is playing a dangerous game: low corporate tax is said to be one of the perpetrators in Ireland’s demise. “There was real concern that the cost of living (inflation) was now outstripping wage increases.” • She doesn’t mention how some companies have had to increase their contributions to defined benefit plans • Nor does she pay heed to the increase in insurance premiums employers have had to pay “As Bank of Canada Governor Mark Carney said before Christmas, corporate Canada must do a better job of investing its hoarded cash” • She doesn’t care to mention that mining companies have increased their dividends YOY in many cases. Shareholders (citizens, pensioners get this money) • Mark is right, but in this low yield environment it’s very difficult to find opportunities that are worth investment. Risk appetite has diminished since 2008 and with the economic uncertainty that remains thanks to the European debt crisis, corps. (banks in particular) are hoarding cash in case of another systemic breakdown. “Canada’s banks and financial sector will rake in about one-fifth of this year’s $2.5billion tax cut. Yet Canada’s big banks had profits of about $22 billion in 2011 and handed outabout $9 billion in executive bonuses” • She “forgets” to mention how banks worldwide, including Canada’s big 5, will have to increase capital reserves to meet Basil III. The bonuses she speak of are not just for CEOs, but in aggregate. She doesn’t mention that each bank employs thousands of Canadians already who will see yearend bonuses. “ Will have to pay for these reckless tax breaks throughreduced services, like the loss of the maritime rescue centre in Newfoundland and Labrador.” • How many individuals does this rescue centre employ? 12 http://www.cbc.ca/news/canada/newfoundland-labrador/story/2011/06/07/maritime-rescue-closure.html it also states that, “The centre's role will be moved to the Joint Rescue Co-ordination Centres in Halifax, and Trenton, Ont.”
- mike in ontario
- January 01, 2012 - 15:24
TO John harker: it was nice to move those jobs to the US....it was very very nice. I save close to 40% on employee wages. It nice to spend more on MY family and MYSELF, much nice than giving than money to workers. It is all about keeping the $$ in the family. of course, that is more profit to declare, and while I do participate in income splitting with my family, I follow the law and pay the required takes. So note that I do pay more taxes since I gross more money. BUT naturally, I end up with more money in my bank account because of the wage savings....SO it was nice, it was very nice. We had a wonderful Christmas and hope to have a great new year.....I wish you one too John harker Are my American workers happy? WHo gives a crap? I want workers, cheap workers to do the job. If they are unhappy, then can be unhappy or they can leave. If I am unhappy with their performance, I will not hesitate to terminate them. If I am unhappy with the labour policies, I will move the business as I did with Ontario. What I strive for is happiness for myself and my family. Family comes first, even if it means putting people out of work. It is tough to say, and honestly heartwrenching to actually do, but you gotta do what is necessary to give your family the most. SO, in the name of family, even after 5 consecutive years of records profits, I still chose to relocate jobs to areas with cheaper wages. I also employ a computer engineer who desiged an software application that replaced the jobs of hundreds of workers with a computer. For these job functions, no wages, raises, benefits, vacation pay, or any of that stuff is paid anymore. That engineeer works in the Toronto head office with me and my family members...I consider these people the core of the company and will never offshore THOSE jobs. But the other jobs, I will move to where ever offers the labour policies that translate to maximum profits. And while you may not want these minimum wage jobs, I'll have you know that the workers that I laid off DO want these jobs. There were really frustrated that there was nothing they could do to save their jobs, but at the end of the day, math is math, and Canaidan labour laws means that these workers cannot compete with their American counter parts. Note that these are unskilled, uneducated workers....there are millions of similar people in the world who can do this. It would be silly of me to pay Canadians more for the same work that can be done elsewhere at a fraction of the cost. On the other hand, my computer engineer's work is priceless to me and I would never offshore his job. But he is skilled, educated, and does work that save me money. In closing, corporate taxes are still too high. You may disagree, and I respect that. BUT please understand that there are people who would want a minimum wage job in Canada, and there are also people who would work for less. Please understand that the current minimum wage DOES price certain Canadian workers out of the market. That, combined with american state and city governments who are offering tax breaks and holidays and cheap real estate to intice companies to move jobs to the US, made it quite inefficient, especially in my case, to keep jobs in Canada. At the end of the say, it is just math.
- Steal from the POOR, give to the RICH... HARPER is RETARDED ROBINHOOD
- January 01, 2012 - 15:16
Cut corporate tax rates and all the 'savings' are shipped to the united states, as per free trade and American tariff rules based on the cost of Canadian business... this occurs at a time when Canadian business is already flush with cashflow due to lack of viable investments, so the only thing that is left to be concluded is that Canada's democracy has been taken over by American lobbyists clad in fascist clothing. Harper's cuts make sense if you follow the money trail to who gets rich... Harper is divesting Canada of secure economic policies and gutting our future stability, all to pay off his rich American and Canadian buddies... he certainly IS NOT acting on behalf of Canadians when he dumps taxpayer money into the hands of useless, know-nothing corporations who's own companies aren't even viable investments at the moment and they are unable to locate a viable investment in the world either. Feels like rats cannibalizing rats knee deep in death.
- John harker
- December 31, 2011 - 15:20
Well isn't it nice for mike in Ontario to relocate his business to a so called southern neighbor because of lower minimum wages and easier labour laws. I hope his low paid American slaves are happy, I believe one of the tenets of fascism is business control of labour, and I'm sorry to see in such a developed world nation we encourage this race to the bottom. Well mike, on behalf of all working ontarians we can do without your low paid jobs.
- ivan johnson
- December 31, 2011 - 12:34
This latest news of rich corperations receiving breaks while taking large profits and not reinvesting back into the country that gave it to them, at the cost of ordinary citizens i.e., loss of jobs, wages, benifits, is not new but has been with us since 1988 when the majority of Canada was fooled into that infamous failed "free-trade" deal. This latest is just a continually progresive effort by big corperations to remove high priced labour, get out of paying ANY taxes, remove government seen interferrence, and slash all benefit costs to their bottom line. It dosen't appear that they will be satisfied until ALL employees are making miminal wage(or less even), have to pay out for any and all services and benefits, and when they have full control of our"elected" governments(which they pretty much already have now). You'd have thought that 'WE' the majority would have ;GOT IT' by now ; big corporations don't feel they should pay for anything and should get everything. They don't like democracies , they hate organized labour , they detest taxes and want everything handed to them. Problem, hmmm , if 'WE'are regulated to slave class liiving,forced to work who knows how long week to week just to survive, how are they to keep up their profits ?
- December 31, 2011 - 11:33
Tax cut once again 2012.
- mike in ontario
- December 31, 2011 - 10:50
Just to add a business owner's point of view, corporate taxes are still too high, compared to other jurisdictions. I just relocated close to 100 canadian jobs to a southern "right to work" state to take advantage of lower taxes, a lower minimum wage, lower property taxes. To boot, the various level of US government have given me a tax holiday on my corporate taxes and property taxes, AND gave my a sweetheart deal to buy the building I will operate of, simply because they are so desperate for jobs. I will go where ever is best for me. At the end of the tax holiday, I am free to negotiate with Ontario and other states, and would be happy to come back to Ontario IF their tax and labour policies are comparable..At the end of the day, I will locate my business in the jurisdiction that will allow me to make the most possible profit. With today's technology, I can be in Canada at the head office, and have the front line work done from anywhere in the world. So, to me, Ontario is still not doing enough with corporate taxes to incent employers to bring jobs here, and also not doing enough to KEEP CURRENT jobs here. For example, employers have to may more CPP for their employees starting JAN 1. WHY ON EARTH would I want to pay more for the pension of my employees when that money could be added to MY retirement fund.
- December 31, 2011 - 10:21
Harper knows who butters his bread - it's not the middle class taxpayer who will end up paying for this tax cut for corporations who can afford to pay it!
- December 31, 2011 - 10:01
Why did he only report on 198 companies? Did the other 47 not support his conclusion? Also, these tax cuts apply to small business as well.
- December 31, 2011 - 09:03
If anything I think that the money would be better spent on the small buisnesses, I mean if anything they should help the employment rates and maybe make the big corporations try to actually compete for their luxeries. I mean like small buisnesses need it more since they are the ones who are trying to grow and get bigger. If the federal government thinks that corporate canada will give money back when there are no consequences then this might as well be a communist society since the government thinks that they care, when in reality they only care about their corporation's success. Harper honestly has done nothing since our recession back in 2007. The americans did the same thing when they caught wind of the recession, look where it got them, they are doing worse than before! All I know is that Canada as a people should stop this, I guess the occupy movement was right all along.