Tuesday, July 12, 2011
How come corporate tax cuts do not equal more business?
•Tax cuts don’t make us more competitive according to the World Economic Forum (amongst free market advocates, the most credible source of such information). In 1999, the year before Paul Martin introduced his huge $100 billion tax cuts, Canada was 5th in the WEF competitiveness sweepstakes. After ten years of tax cuts (including Flaherty’s we are in 10th place (down from 9th in 2009). Who beats us? Amongst others, the Nordic countries, which collect half their GDP in taxes each year. Nine of the 15 countries ahead of us have higher corporate taxes.
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