Corporate tax cuts are not working

Corporate tax cuts are not working

mentalfloss

No Party Affiliation

#1Jan 31st, 2012

Economy shrinks unexpectedly in November

Canada’s economy -- 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

Last edited by mentalfloss; Jan 31st, 2012 at 08:54 AM..

Durry

Re: Corporate tax cuts are not working

Jan 31st, 2012

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

No Party Affiliation

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by 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?

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

captain morgan

Bloc Québécois

Re: Corporate tax cuts are not working

Jan 31st, 2012

High taxes

Durry

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

-1

Re: Corporate tax cuts are not working

Jan 31st, 2012

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

captain morgan

Bloc Québécois

#7 Top Rated Post

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Walter

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

Republican

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Durry

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

No Party Affiliation

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Walter

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

#10

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

No Party Affiliation

#11

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Durry

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

#12

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

Bloc Québécois

#13

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

No Party Affiliation

#14

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Durry

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

#15

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by captain morgan

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

Gotcha - it's all so clear now.

....

mentalfloss

No Party Affiliation

#16

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by captain morgan

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

#17

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

No Party Affiliation

#18

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Durry

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

#19

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by darkbeaver

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

#20

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by TenPenny

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

Yeah, but are they still standing????

Walter

+2 / -1

#21

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

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

This is not happening.

That's because the taxes are still too high.

mentalfloss

No Party Affiliation

#22

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by Walter

That's because the taxes are still too high.

For who?

Loonie lower as November GDP growth, U.S. consumer confidence data disappoints

TORONTO - The Canadian dollar moved lower against its U.S. counterpart at midday Tuesday as the Canadian economy unexpectedly contracted in November while American consumer confidence sharply deteriorated in January.

The loonie lost 0.14 of a cent to 99.58 cents US, well off the highs of the session, as Statistics Canada announced that the country’s real gross domestic product edged down 0.1 per cent in November.

The weaker GDP comes after showing no growth in October. Economists had looked for the economy to grow by 0.2 per cent.

Statistics Canada said lower output in the energy sector accounted for most of the November decline, as oil and gas extraction fell 2.5 per cent.

"While most of the downside surprise was heavily concentrated in one category, no sectors stepped up to provide any offset, which shows yet again that underlying activity remains lacklustre at best," said BMO Capital Markets deputy chief economist Doug Porter.

In the U.S., The Conference Board, a private research group, said that its Consumer Confidence Index now stands at 61.1, down from a revised 64.8 in December. Economists had expected a January reading of 68.

--

captain morgan

Bloc Québécois

#23

Re: Corporate tax cuts are not working

Jan 31st, 2012

Ahhh, I see.

By raising the corporate tax rate, the energy sector will respond by increasing it's drilling and exploration, thereby paying more for the services and earning more revenues from production that it can pay a higher tax rate on.

It's all so clear now.

mentalfloss

No Party Affiliation

#24

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by captain morgan

Ahhh, I see.

By raising the corporate tax rate, the energy sector will respond by increasing it's drilling and exploration, thereby paying more for the services and earning more revenues from production that it can pay a higher tax rate on.

It's all so clear now.

No, it can be used to help pay off the deficit and debt considering are sliding economy won't.

captain morgan

Bloc Québécois

#25

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

No, it can be used to help pay off the deficit and debt considering are sliding economy won't.

And when business responds by decreasing their operations?

Any ideas on what that does to the tax contributions?

mentalfloss

No Party Affiliation

#26

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by captain morgan

And when business responds by decreasing their operations?

This removes a barrier to entry and a competitor which manages resources more wisely can enter the market.

Competition.. in private industry.. creating more jobs.. who woulda thunk it?

Canadian Stocks Retreat as U.S. Consumer Confidence Declines

Jan. 31 (Bloomberg) -- Canadian stocks fell, paring a monthly gain, as raw-materials and energy companies dropped after the U.S. Conference Board reported a decline in its consumer-confidence index.

Potash Corp. of Saskatchewan Inc., the world’s largest fertilizer producer by market value, lost 1.5 percent after an analyst at Goldman Sachs Group Inc. cut her rating on the stock. Intact Financial Corp., Canada’s biggest property and casualty insurer, rose 3.3 percent after an analyst at National Bank of Canada forecast a “solid quarter.” Canadian Natural Resources Ltd., the country’s second-largest energy company by market value, decreased 1.2 percent as oil and gas futures retreated.

The S&P/TSX Composite Index slipped 20.74 points, or 0.2 percent, to 12,415.68 at 2:12 p.m. Toronto time, reducing its monthly increase to 3.9 percent. The S&P/TSX rose as much as 0.8 percent before the release of the consumer-confidence data.

The index is climbing for the second month in the last 10. Mining companies gained on economic data showing a stronger U.S. economy and the U.S. Federal Reserve’s plan to keep interest rates at historical lows until at least late 2014. The S&P/TSX slumped 11 percent last year as the European debt crisis led to concern global growth would slow and demand for raw materials would decrease.

Resources companies make up 48 percent of Canadian stocks by market value, according to Bloomberg data.

--

Last edited by mentalfloss; Jan 31st, 2012 at 02:10 PM..

captain morgan

Bloc Québécois

#27

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

This removes a barrier to entry and a competitor which manages resources more wisely can enter the market.

Competition.. in private industry.. creating more jobs.. who woulda thunk it?

Wow.... That is, uh, well -a - ridiculous.

Who are the Canadian producers competing with MF?

What does stand Canada to gain by gutting it's own corporate sector?

Machjo

#28

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by mentalfloss

Economy shrinks unexpectedly in November

Canada’s economy -- 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

How do you know the decline is because of the tax reduction? And how do you know the decline would not have been worse without the reduction?

Of course there are pros and cons to corporate tax reductions. As for cons, it reduces government revenue poetentially. As for pros, it promotes economic growth. In the face of a federal debt, I don't agree with corporate tax cuts, but in teh absence of such debt, I'd personally cut corporate taxes to 0% and introduce a resource tax instead.

As for wealth redistribution, German-style codetermination legislation would suffice.

WLDB

NDP

#29

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by 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?

We carried it for the first hundred years. You folks still have another 50 years to go before we become even.

captain morgan

Bloc Québécois

#30

Re: Corporate tax cuts are not working

Jan 31st, 2012

Quote: Originally Posted by WLDB

We carried it for the first hundred years. You folks still have another 50 years to go before we become even.

You must be pretty old.. A centurion by chance?

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