Harper corporate tax cuts reckless and unaffordable
Unlike in 2007 when these corporate taxes were voted on, Canada is now running a $56-billion deficit and has accumulated more than $200 billion in new debt under the Harper government.
These extra corporate tax cuts will have to be paid for with borrowed money, carrying interest and serving as a mortgage on our future. Moreover, these cuts to the richest means that there's less for what families need, like better pensions, health care, education and home care.
The Bank of Canada said last year that Canada’s tax rates were among the most attractive in the world. Corporate taxes in Canada have been cut by 35% in the past few years and are now the second lowest in the G7, next to the UK. Our rate is a full 25% below the rate in the United States.
Contrary to the myth, the Harper Conservatives are actually increasing taxes. While they want to give tax breaks to Canada’s largest corporations, Harper is actually hiking EI payroll taxes – effectively increasing the tax burden for small businesses. The Conservatives have got it backwards. They’re increasing job-killing payroll taxes on all employers and employees, while decreasing the corporate tax rate for large corporations.
The Conservatives are not cutting the tax rate for small businesses. In fact, their $6-billion tax cut ignores 95% of the 2.2 million active businesses in Canada.
Cutting corporate taxes is not cost-effective. The Department of Finance has reported that corporate tax cuts are the least efficient way to create jobs and drive growth in the economy in the short term. Help for infrastructure, housing and for families is far more effective in fostering growth and jobs.
Middle-class families remain under financial pressure. They are struggling with household debt and the rising cost of living, family care-giving, saving for retirement, and access to post-secondary education.
These are the priorities Michael Ignatieff's Liberals are focusing on.
Harper has ignored these issues because his priorities are spending billions of tax dollars on untendered fighter jets, billions for prisons we don't need, hundreds of millions for photo-ops, and tax cuts for the largest corporations.
Is this the Canada we want?