In the nineties the Liberals discovered that in order to balance their deficit budget they could dig into payroll taxes, and re-jigged Unemployment Insurance renaming it Employment Insurance and restricting workers access to it. The resulting savings they made off the backs of Canadian workers created the federal surpluses. Which the Conservatives have inherited and continue to use to offset the corporate tax breaks they give to their Bay Street pals.
Profits have risen for corporations thanks to these tax breaks but instead of plowing them into productivity they have continued to rely on cutting production costs; that is laying off workers, to create more with less, while investing their cash in the stock market.
Tax breaks for corporations is welfare for the less needy, or as my pal Larry Gambone calls it Socialism for the Rich.
Graph courtesy of My Blahg.
SEE:
Flaherty's Tax Deception
Flaherty's Smoke and Mirrors
Tax Cuts For All
Tax Cuts For The Rich Burden You and Me
Tax Fairness For The Rich
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