2008 Year Of Corporate Welfare

The corporate tax holiday that begins today and will only continue on a downward trend promises the Harper. So you have to ask who pays to make up for this? Why you and I off course. In 1960 the 41% tax rate made up over 60% of all government revenues. As it declined that need to make up the difference shifted to Joe and Jane Canuck.

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

Who Pays


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