Corporate tax cuts are not working

[mentalfloss]

Economy shrinks unexpectedly in November

Canada’s economy contracted in November for the first time since May as oil and gas extraction declined sharply, setting the stage for a sluggish performance in the fourth quarter.

Real gross domestic product fell 0.1 per cent in the month, Statistics Canada said on Tuesday, contrasting with market expectations of 0.2-per-cent growth.

GDP had stalled in October following four straight months of expansion.

Oil and gas production fell 2.5 per cent in November, partly due to maintenance shutdowns, and exports of both commodities slid.

The weakness in the energy sector as well as in wholesale trade, finance and construction overshadowed growth in manufacturing, up 0.6 per cent, and in other industries such as food and accommodation, real estate and professional services.

Service-producing industries expanded by 0.1 per cent for the fourth straight month while goods-producing industries shrank by 0.6 per cent, Statscan said.

Economy shrinks unexpectedly in November - The Globe and Mail

 

[Durry]

The east has to start carrying its share of weight in contributing to Canada's GDP.
Just how long is the west expected to keep carrying all of Canada?

 

[mentalfloss]

The east has to start carrying its share of weight in contributing to Canada's GDP.

Just how long is the west expected to keep carrying all of Canada?

Is that why manufacturing was up and petrol extraction was down?

 

[captain morgan]

High taxes

 

[Durry]

Is that why manufacturing was up and petrol extraction was down?

Manufacturing in Canada is not carrying a large enough share of contributing to GDP. Man has to be more productive and a lot more of it.
Petro is the largest contributor to Canada's GDP.
The east has to pick up its socks and increase and improve productivity of it's Manufacturing!!

 

[Walter]

There is no mention of corporate taxes in the article. Change the thread title.

 

[captain morgan]

There is no mention of corporate taxes in the article. Change the thread title.

Why do something silly like change the thread title to something that is even 1/2 way accurate when it's so much easier to mislead folks to bend to an agenda?

 

[darkbeaver]

Manufacturing in Canada is not carrying a large enough share of contributing to GDP. Man has to be more productive and a lot more of it.
Petro is the largest contributor to Canada's GDP.
The east has to pick up its socks and increase and improve productivity of it's Manufacturing!!

We live in the trees and we still don't make our own kitchen tables and chairs. Everything gets chipped and shipped.

 

[mentalfloss]

There is no mention of corporate taxes in the article. Change the thread title.

Corporate tax cuts are what we were told will have a constantly beneficial impact on the economy.

This is not happening.

 

[Durry]

Corporate tax cuts are what we were told will have a constantly beneficial impact on the economy.

This is not happening.

How do you know, any evidence of your claim ?

 

[mentalfloss]

How do you know, any evidence of your claim ?

GDP growth stalled and is going down.

So corporate taxes at the current rate of 16.5% are not consistently fueling job growth or output.

 

[Durry]

GDP growth stalled and is going down.

So corporate taxes at the current rate of 16.5% are not consistently fueling job growth or output.

Wrong!!
How do you explain that since corporate tax has gone down, tax revenue from corps have gone up ??

 

[captain morgan]

GDP growth stalled and is going down.

So corporate taxes at the current rate of 16.5% are not consistently fueling job growth or output.

Ahhh! So the solution is to increase the taxes to motivate the private sector.

Gotcha - it's all so clear now.

 

[mentalfloss]

Wrong!!
How do you explain that since corporate tax has gone down, tax revenue from corps have gone up ??

Tax revenue doesn't mean the economy benefits as it depends on how the government uses that money.

However, corporate tax cuts have always been championed as beneficial for the economy because they give corporations more freedom to use that money for job hiring, salaries, benefits, etc., etc..

Except, they're not doing that. Who knows what they're doing, but it's not contributing to the economy that's for sure.

It's reaganomics. We all know this ideology doesn't work.

 

[Durry]

Ahhh! So the solution is to increase the taxes to motivate the private sector.

Gotcha - it's all so clear now.

....:lol:

 

[mentalfloss]

So the solution is to increase the taxes to motivate the private sector.

The solution is to do other things to benefit the economy. Tax breaks won't work, and we might as well save some of that money and put it toward healthcare or the debt.

Although, with the existing government it might be better to let corporations keep the tax breaks even if it doesn't contribute to the economy as they would likely spend it on prisons and jets.

 

[Durry]

Except, they're not doing that. Who knows what they're doing, but it's not contributing to the economy that's for sure.

It's reaganomics. We all know this ideology doesn't work.

It takes time to works it's way thru the system.
Many corps don't have confidence in the economy and gov , so they are reluctant to spend. Kinda like chasing your own tail ..

 

[mentalfloss]

It takes time to works it's way thru the system.

They're not directly related.

There are successful economies with low corporate tax rates and high corporate tax rates.

It truly depends on the industries involved and how each corporation wants to use the additional source of revenue.

 

[TenPenny]

We live in the trees and we still don't make our own kitchen tables and chairs. Everything gets chipped and shipped.

Really? My table and chairs were made about 100 km from where I live.

 

[Durry]

Really? My table and chairs were made about 100 km from where I live.

Yeah, but are they still standing???? :lol: