Corporate tax cuts are not working
- Thread starter mentalfloss
- Start date
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.
Loonie lower as November GDP growth, U.S. consumer confidence data disappoints - Winnipeg Free Press
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.
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.
And when business responds by decreasing their operations?
Any ideas on what that does to the tax contributions?
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.
http://www.businessweek.com/news/20...reat-as-u-s-consumer-confidence-declines.html
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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?
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
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.
We carried it for the first hundred years. You folks still have another 50 years to go before we become even.
No, Im not old enough to have served in the Roman legions.
Just a supercentenarian.
"Corporate tax cuts are not working".
What? Trickle-down theory not working? Say it ain't so! (sarcasm)
Trickle down theory is also know as the horse and sparrow theory - if you feed the horse enough oats, some will end up on the road for the sparrows. IOW, the rich get richer and the poor only may be slightly better off.
If they do actually have an effect, it ain't much and are not spontaneous by a long shot. And tax cuts are also known by another term, corporate welfare.
http://www.theglobeandmail.com/news...veals-as-election-pledges-fly/article1972599/
IMO, the stunned gov't should leave taxes alone and provide REAL incentives for small and medium sized businesses, which, BTW are the backbone of the economy.
What? Trickle-down theory not working? Say it ain't so! (sarcasm)
Trickle down theory is also know as the horse and sparrow theory - if you feed the horse enough oats, some will end up on the road for the sparrows. IOW, the rich get richer and the poor only may be slightly better off.
If they do actually have an effect, it ain't much and are not spontaneous by a long shot. And tax cuts are also known by another term, corporate welfare.
http://www.theglobeandmail.com/news...veals-as-election-pledges-fly/article1972599/
How does tax revenue translate to Joe Lunchbucket's job and pocketbook?
IMO, the stunned gov't should leave taxes alone and provide REAL incentives for small and medium sized businesses, which, BTW are the backbone of the economy.
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Why don't you tell this to the government ? Better yet, why don't you run for office, and then you could make everything correct!!
All you really have to do is to tell the public how smart you are and tell them how much you know about economics and how your going to help mr lunchbucket and you'd be a shoe in!!!
Go for it !!
hmm ad hominem. I should have expected that. http://www.nizkor.org/features/fallacies/ad-hominem.html
Do you have anything on topic? Do you have a rebuttal about anything I said? Or do you just want to continue your childish rant?
No, I don't have a rebuttal, your so fk'g brilliant I could never offer you any constructive suggestions. Your knowledge of mico and maco economics is just outstanding as well as your knowledge of government finance.
When did you say your going to run??? The public is awaiting your presence, don't disappoint them!!!
The furniture or the trees?
Can someone explain how a slight dip in GDP is in any way related to taxes? Or how raising corporate taxes will improve the economy and convince investors to create new jobs?
More correctly the east stole resources from the west to appease the vote rich east. How else do you explain things like the Crow freight rate? Now most of the barriers to exporting products east have disappeared and so has most of the manufacturing in the east so we are still carrying the burden. Westerners having been bitten before would rather ship south or to Asia rather than Ontario &Quebec.
Actually the relationship between taxes and GDP is generally that GDP dips as taxes increase.
They won't.
Dropping corporate taxes generally has less effect the further down the effects trickle.
Like I said, gov't should just find a set of rates for taxes and then leave them alone.