We're posting this excellent letter sent in by one of our supporters, Edward Carson of Toronto. If other supporters or readers would like to send in or submit letters or articles, please do so!
So the Senate's banking, trade and commerce committee wants immediate corporate tax cuts to facilitate competitiveness and investment ("Senate committee calls for corporate tax cuts to boost competitiveness").
Before leaping into deeper corporate tax cuts, let's all look at some facts.
In the government's own reported composition of its revenues for 2016-17, corporate taxes contributed a mere 14.4%, whereas personal income taxes from Canadians carried a disproportionate load of 49%, well in excess of that if GST and EI premiums are added in. Where is the tax fairness in that?
Perhaps it is time for corporations to pay their fair share.
Further, over the past decade Canada's corporations were given deep tax cuts (from 21% to 15%) yet utterly failed to re-invest their tax windfalls in new Canadian jobs (remember Carney's "dead money").
Data from Statistics Canada and other sources has repeatedly shown corporations in Canada have been in fact hoarding their tax windfalls, implementing share buy-back schemes or investing in ventures outside of the country. In short, a failed tax cut experiment in return-on-investment.
Strength of leadership is needed now to communicate the much-needed cause of realigning our approach to corporate taxation. Simply feeding corporations more tax breaks has never in the past improved competitiveness or investment, certainly not in proportion to the size of those massive tax cuts. Nothing in corporate actions thus far should lead us to think more of the same will magically produce results that are any different.