Harper’s myth debunked! Cutting corporate taxes does not lead to more jobs!

The corporate tax debate tends to get bogged down by scholastic jargon, the Liberals on the defensive as many "experts" weigh in with their economic theorems, theoretical realities that SHOULD pan out apparently. Trouble is, for those pounding the table on corporate taxes, the arguments are OBLITERATED in the face of the real world data. According to Statistics Canada, not only have corporate tax cuts failed to deliver to the economy as advertised, about all they have done is lead to HOARDING, no trickle down, no job creation, furthering the gap between rich and poor. It’s almost remarkable when you think of the sales job on the benefits of corporate taxes:

But an analysis of Statistics Canada figures by The Globe and Mail reveals that the rate of investment in machinery and equipment has declined in lockstep with falling corporate tax rates over the past decade. At the same time, the analysis shows, businesses have added $83-billion to their cash reserves since the onset of the recession in 2008.

But the tax cuts appear to have reversed decades of tradition. Investment in equipment and machinery has fallen to 5.5 per cent in 2010 as a share of Canada’s total economic output from 6.8 per cent in 2005 and 7.7 per cent in 2000, The Globe analysis shows.

A pretty telling graph, not only does investment not increase it GOES DOWN, despite being awash in cash. Theory gets a kick in the sweets:

The exact opposite should occur, and yet the graph is striking. Now proponents would say EVENTUALLY companies will get off their stockpile of cash and invest, but again where is the basis in fact? Factor in more money going to the top 1% of our society, and something doesn’t quite jive.

Another argument, that the corporate taxes lead to job growth, apart from simply re-investing, companies hire people because of improved balance sheets. The biggest benefactors of corporate tax cut decreases are the big banks, accounting for a sizable percentage of the overall cuts. I recommend people google "banks slash jobs", "banks cut workers", etc, what you will find absolutely no job creation, just hoarding cash while STILL TRIMMING payrolls. It really is quite remarkable, basically nothing the incredibly intelligent economists suggest has actually manifested itself. It’s the equivalent of the weather man calling for muggy, warm weather and instead we have a blinding snowstorm, reality bears no relation to the forecast.

Click HERE to read more from Steve Val.

Article viewed at: Oye! Times at www.oyetimes.com

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