Canada Cut the Corporate Tax Rate by 30%, So Where Are the Jobs?

September 1, 2012 at 5:32 PM 1 comment

Republicans are forever telling us we must lower the corporate tax rate because if we do, corporations will start “investing in America” and they’ll create jobs.  What Republicans are really saying, of course, is that they want to put more cash into the pockets of their corporate buddies but let’s pretend we’re buying their for-public-consumption argument.  Let’s pretend we do what Canada has done over the last six years which is to lower the corporate tax rate by 30%:

(Image via Wikipedia)

Tax cuts create jobs. Paul Ryan and the Republican nominee Mitt Romney told a group that Canada just cut their corporate taxes to 15%.

Paul Ryan was obviously insinuating that these tax cuts put America at a disadvantage, and that the Canadian economy is going to explode and take all of our jobs. Corporate taxes in 2006 were already just 21%. In January 2011, Canada cut the corporate tax rate to 16.5%, then cut them again to 15% January 2012.

Overall, Canada has cut corporate taxes by almost 30% in 6 years.

The only problem is, the Canadian economy isn’t blasting off at all. It is still stuck in an anemic recovery. just like the United States. The Canadian economy only grew 1.8% in the second quarter of 2012. The United States on the other hand has a much higher statutory corporate tax and the economy grew at 1.7% in the same quarter. How can this be? Higher taxes hurt job creation, right? Yet both countries are stuck in the same slow recovery.

Unemployment in Canada has only dropped 1% since the recession ended, less than the drop in the United States which dropped almost 2%.

Unemployment should be dropping like a rock in Canada, not staying pace with the United States.

More…

And don’t forget, when a politician talks about cutting taxes for one group, that means either they raise them for another, or cut services.  Do we really want to lower corporate taxes?  How does that get balanced out?  By cutting infrastructure?  Schools?  Something’s going to have to give.

Oh, and remember when they told us if we cut taxes on the rich, they’d create jobs?  Oops.  That didn’t exactly pan out so now they’re trying to pull another one with this corporate tax cut BS.  Enough already.

P.S.  Hey Canada.  You have a beautiful flag.

About these ads

Entry filed under: Corporatocracy, Our Tax Dollars. Tags: .

Vote, Like a Guy’s Life Depends on It Clint Eastwood Not Included in Romney Campaign Convention Montage

1 Comment Add your own

  • 1. Jon Edward  |  October 10, 2012 at 4:39 AM

    For the first time in history, Canada has a better GDP AND a better GDP to debt ratio than the United States! They lowered not just the corporate tax rate, but the personal tax rates as well! Now the highest personal income tax rate in Canada is 29%. Obama wants to raise our top bracket to 40%.

    Canada has also recorded the fastest employment growth in the G-7 since mid-2009, with employment having increased by almost 760,000 net new jobs. The number of new jobs in Canada is now close to 335,000 above its pre-recession peak, making Canada one of only two G-7 countries to have regained all of the jobs lost during the global recession! Woops! I guess the facts don’t corroborate your assertions.

    Lowering corporate taxes booster foreign investment to where now 10% of Canadian jobs are tied to foreign investment, compared to only 5.3% back in 2005.

    Regarding their GDP rate of growth, their rate is far more stable than ours! They’ve not had a growth rate or loss of more than 2% in the past 20 years! They’ve actually never had a loss of more than 1.8% in the past half century, while we dropped 8.9% in a single quarter!
    Strong banking regulations help keep their rates more stable.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Trackback this post  |  Subscribe to the comments via RSS Feed


Follow Me On Twitter

Categories


Follow

Get every new post delivered to your Inbox.

Join 1,234 other followers

%d bloggers like this: