Over the last three decades, successive governments, both Liberal and Conservative, have cut the federal corporate tax rate from 36 per cent to 15 per cent, now among the lowest in the developed world and lower than even in the tax-allergic United States. During this time, corporate profits have soared, yet the purported public benefits of these cuts have by and large failed to materialize
Another aspect is the shift by large corporations away from direct employment in favour of outsourcing for most aspects of their business. Things like manufacturing, distribution, administration, customer support, janitorial, retailing...(the list goes on) are routinely contracted out to the lowest bidder which cuts corporate costs of course, but usually at the expense of wages and benefits. At the same time these businesses impose stringent standards on these contractors to maintain brand loyalty and investor confidence. The end result? Look south of the border to a nation of low income earners, a shrinking middle class, and income disparity where the numbers are staggering.