Wednesday, 30 January 2013

Corporate Welfare Bums, Not Jobs: $75 Billion in the Bank, But Where're the Jobs?

The Canadian Labour Congress has just published its report on corporate tax hoarding.
 The conclusion?  Some $75 billion in the bank, but darn few jobs created.  Here's what the report says:

"Corporate income taxes in 2011 amounted to only 8.3% of all government revenues, down from 8.8% in 2010 and an average of 11% in the 1960s and 70s.  In return for tax breaks, companies are supposed to be investing their windfall, but studies have shown that rising corporate after-tax profits are not all invested in increased productivity and the creation of good jobs in Canada."

"Corporate tax giveaways have cost the federal government billions of dollars in foregone revenues, CLC Secretary-Treasurer Hassan  explains. "To pay for its tax breaks, Ottawa has borrowed billions and driven up the national debt. Now, the government has chosen to make massive cuts to public services that are essential to Canadians in order to pay the bill for its tax giveaways.

“Ottawa should target corporate tax credits to companies that actually do invest in machinery and increased productivity in Canada,” Yussuff adds. “The government should also be investing in public infrastructure including transit, literacy, workplace training and child care. These are good ways to prepare for the economy of tomorrow and to stimulate Canada’s economic growth and development.”

And to make it clearer, here's a little play by play of the race to get the most in corporate tax benefits.

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