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This about that. I am tired of people spinning corporate tax cuts as only for the fat cats. I might be a little fat, but I'm definitely not a cat, but like many small businesses, I am incorporated. Thousands of small mom and pops you deal with every day are incorporated too. Our progressive tax regime is not conductive to sole proprietorships, so if you are a little bit successful, you quickly progress to making the CRA successful in collecting a lot of personal tax from you.
I'm not going to go on about how corporate taxes are just passed on to the consumer in higher prices, or less opportunity for the folks to get a job, or how a percentage increase in corporate taxes are magnified throughout the system, or how taxes like these, in general, are morally wrong because the tax on producers is taken by those that did not produce anything by force of law. Not going to go on about all of that.
But those percent changes mean a great deal to those small businesses running on slim margins, already seeing those margins squeezed by increased sales taxes that have increased business costs while lowering client's purchasing powers, and reducing gross sales. Costs for everyone are increasing, and income is static while governments grasp for even more revenue to pay for services we can not afford and often they need not deliver. Then this grasping chokes off more production, reducing government revenues, requiring more grasping. You see where this is going, and its a sum zero result.
Give us some breathing room, and we will produce the goods, the services and the jobs needed by all. And maintaining the scheduled corporate tax cuts is a start. Cutting red tape and getting the bureaucrats out of our way is a great next step. I know if I can just squeeze another 10% out of my bottom line costs, I can provide someone with a job, where they can gain pride from being productive and a well deserved income. Corporate tax cuts aren't the only thing that could contribute to finding that 10%, but taking another 3% out of my business will prevent me from keeping those producers I have.
So when I hear the choices between keeping the scheduled corporate tax cuts as they are, as the CPC has promised, having them rolled back as the LPC has promised, or having them pegged as just under the US rate as the NDP has promised, my decision is clear. For me, and for those I employ.
Perhaps this might help you decide when you hear about the menacing wrong headed priorities of the CPC ignoring families to give tax cuts to their corporate friends, that I am one of these corporate cronies, and many regular folk like me are as well, and we are the ones that produce the jobs for families in this country. The thousands of small enterprises from Newfoundland to British Columbia and all points between that stand to gain from this policy.
And lose from the policies of the LPC and NDP.
By the way, to keep corporate taxes below US levels, the NDP have a lot of leeway. Corporate Taxes in the US are 35%. Ours are currently 16.5%. Is it any wonder why we are doing better than the US when it comes to economy? Even when our greatest market is in the tank worried about a double dip recession?
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2 comments:
The problem is few understand economics very well so they seem to detach corporations from the average person. They otherwise forget that if corporations make less money, they have to lay off workers which means less jobs for lower income people. Politically speaking, it makes perfect sense to favour raising corporate taxes, but not so economically. By contrast cutting the GST made perfect political sense, but was economically stupid. I would argue the HST is also economically wise, but not politically popular. If you want to win the next election you do what is politically popular, if you plan to keep your promises and stay in power you do what is economically best as people rarely elect governments when the economy tanks. Off course you can always do both by simply breaking your promise as many politicians do and then you get the best of both worlds.
There are over 400,000 corporations in Ontario alone that hire a lot of workers who pay taxes on their wages.
I think every small corporation should put a big sign in their window, I am a corporation. People might be surprised that they are not all banks and oil companies and do not pay out millions in bonuses.
Maybe those employed by a corporation should have a button made, I work for a corporation. Might shock a lot of politicians that they are going after the Canadian family they say they are working for.
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