The fact that tax cuts do not create jobs as predicted has not stopped right-wing parties in search of business support from repeating the promise.
corporate tax cuts
Donald Trump describes his new tax bill as "an incredible Christmas gift for hardworking Americans," but in reality it's the largest wealth transfer from the bottom to the top in American history.
Secreting wealth in tax havens deprives Canadian governments of massive amounts of tax revenue every year
Corporate income tax (CIT) cuts have not only failed to lead to faster growth, there is evidence to suggest that CIT rate reductions contributed to slower growth.
There's every indication that Justin Trudeau, notwithstanding his progressive talk, would continue the longstanding Liberal tradition of letting Bay Street call the economic shots.
What a surprise! The NDP makes a proposal for a very modest increase in corporate tax rates and defenders of all things corporate in Canada turn on their scary corporate tax number-generating machine.
The political calculus of corporate taxes has changed dramatically. Canadians' willingness to watch corporations receive favourable treatment, while delivering less economic effort, has evaporated.
Today, corporations pay a much smaller portion of their profits to the government thanks not only to tax cuts, but also to an entire taxation regime designed for their benefit.
What is the combined effect of the race to the bottom for small business and corporate taxes? This tax policy is one among many factors contributing to income and wealth inequality in Canada.
The problem is that the small business of the imagination -- the mom-and-pop operation -- is not at all representative of the corporations that benefit from the small business tax rate.