Deeper Corporate Tax Cuts Could Cost 46,000 Jobs, says CAW
Cutting the corporate tax rate will cost the country jobs, instead of creating them, says CAW President Ken Lewenza in response to the claims by Federal Finance Minister Jim Flaherty that low taxes will boost the Canadian economy and employment.
“All that cutting the corporate tax rate will do is drain money from government coffers,” said Lewenza. “This new tax cut will reduce federal revenues by $3 billion, a whole lot of money that could be better spent elsewhere. When corporate taxes are cut, it does not guarantee that companies will spend the money on research and development or on hiring more employees.”
New research by CAW Economist Jim Stanford proves that cutting corporate tax rates bear little relationship to increased staffing levels or a boost in economic activity.
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