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.
It's a fickle relationship.
The market and private sector will (can) withstand cost increases when the economy is strong and money is transacting through the system. That said, there is also a point when the econ conditions are marginal wherein a tax increase will act as a discouraging factor and inhibit growth or add pressure to down-sizing.
A great example is what Stelmach did (or threatened to do) to Alberta's royalty structure for oil & gas. In effect, he stated that the royalties were poised to increase - industry responded by reducing their planned operations in Alberta and instead pursued oil/gas opportunities in BC and Sask.
The fallout for AB is that once the money and corporate resources are applied elsewhere, it stays for a period of time. A simple reversal of policy can not undo the lost investment, etc.