Majority has spoken - scrap corporate tax cuts

 

Press release - May 5, 2011

New fair tax advocacy group says “majority has spoken” and the corporate tax cuts should be scrapped

(May 5, 2011)  Canadians for Tax Fairness (www.taxfairness.ca), a new national advocacy group, says the majority has spoken and further corporate tax cuts should be scrapped.

“More than 60% of the voters supported the NDP, Liberals, Bloc and Greens, and all of those parties strongly opposed the outrageous multi-billion dollar tax giveaway to the banks, oil companies and other highly profitable corporations, “ said Murray Dobbin, board member and spokesperson for Canadians for Tax Fairness.  “Announcing an end to the cuts would be a strong signal that the new “majority” government that received less than 40% of the popular vote is willing to listen to what the majority want.”

Canadians for Tax Fairness emphasized that public opposition to the corporate tax cuts has been significant and consistent. In January, Leger Marketing found only 10% of respondents favoured the cuts, as well as 40% supporting increased corporate tax rates. In early March, both CP-Harris Decima and Ipsos Reid polls found 59% opposed to the cuts. In late March, Forum Research reported more than 60% opposed.

According to studies and papers published by the Canadian Centre for Policy Alternatives, corporate tax cuts have not been effective at creating jobs or spurring investment. The government’s own Finance Department said spending on infrastructure creates five times more short-term economic benefit than corporate tax cuts.

In March, former Bank of Canada Governor David Dodge said “the final scheduled cut in the corporate tax rate might be foregone (or postponed well past 2013) without losing tax competitiveness...”.  Philip Cross, senior economic analyst at Statscan, said the value of more tax cuts would be “trivial”.

“It’s time to stop the race to the bottom on corporate taxation. We need a more fair and balanced approach to taxation to support the services and programs that Canadians need,” said Dobbin. “We call on Parliament to implement a process to develop a fair and equitable tax system for Canada, and for provincial governments to do likewise.”

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Contact:

Murray Dobbin - mdobbin@telus.net

Larry Gordon - larry.gordon@taxfairness.ca

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