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January 29, 2011 / mike54martin

Corporate Tax Cuts: A Scam, a Sham and a Circus

The Tories plan to go ahead with the last phase of their planned corporate tax giveaway is a scam, a sham and a circus.

The scam is that federal corporate tax rates in Canada have dipped 5% in the last five years. One point for each of the Tories years in office. We continue the race to the bottom of corporate tax havens around the world at a cost to the Canadian treasury of over $60 billion dollars. This is not seed money for mom and pop operations in Canada but for the big players who already seem to doing just fine, thank you very much. If not how could they afford to pay their CEO’s salaries from $10-$20 million dollars a year? That’s more money in the first week in January than all the rest of us will receive for an entire year.

The sham is that these monies are being granted to corporations in the hopes that they will re-invest this free cash to create more jobs in Canada. Some jobs will be created through these slush funds but most of it will go to already profitable corporations who will use it to reward their CEO’s (see above) and their shareholders. Some of it, an estimated $4-$6 billion dollars will even go to corporations who are headquartered outside of this country. You heard of trickle down economies, this is a trickle, no a flood upwards.

The circus is that Harper has dispatched Jim Flaherty and his senior ministers (flunkies) to go out and spread the word to Canadians that this sour medicine is actually good for us. And anybody who opposes these tax cuts are job killers and cat haters… (sorry I couldn’t resist). According to the Reform/Alliance/Conservatives our whole economic recovery depends on this. Without it we are doomed to be a nation of poor, ignorant, imbeciles. Maybe they were talking about themselves there.

The bottom line is that these corporate tax cuts are unnecessary, unwarranted and unaffordable. Every tax dollar that is given away to corporations is another dollar that you and I will have to pay in order to reduce the deficit. What is really needed is a reform of our taxation system so that they who have a lot pay a little more and not get a free ride. It’s time to restore some level of fairness to the Canadian tax system.

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