Five reasons to say no to more corporate tax cuts

Armine Yalnizyan, Globe and Mail Blog:

The Harper government ’s commitment to further reduce the general corporate income tax rate while the nation struggles with budgetary deficits has been championed by – surprise! – the corporate sector. But the majority of Canadians, including business owners, and those who work for them, say no to these cuts now.

Here are five economic reasons not to keep reducing the federal corporate tax rate this year or next.

Least effective job creation measure

According to the nation’s official number crunchers, if you want policy to encourage job creation, cutting corporate taxes is the weakest option (20 cents growth from every dollar of tax cut). Spending on infrastructure has the most impact ($1.50 on every dollar spent). Finance shows spending on income supports for the unemployed and low income Canadians has an equally big pop, and housing initiatives are almost as good ($1.40 for every dollar spent).

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