The thing with tax cuts, especially corporate ones, is that we've been cutting them over and over again for years, to what seems to me like increasingly diminishing returns. Here's a piece from the
Globe and Mail:
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At the heart of the debate is just how effective corporate tax cuts are as a job-creation tool. For companies such as Western Glove, the short answer appears to be not at all. For those companies seeking to make their domestic operations more efficient as they face global rivals, the evidence is less than clear.
Even the most ardent fans of the economic stimulus measure - corporate executives themselves - acknowledge that they are hard pressed to find a direct link between tax cuts and job creation.
The Globe and Mail interviewed executives in the machinery, aviation, food, beer and retailing sectors. All said low taxes foster confidence in the economy. But they said many other factors go into making investment decisions, including the cost of raw materials and the value of the Canadian dollar. Many executives singled out specific programs, such as research and development incentives for small companies and funding for retraining programs, as more effective in creating jobs.
And from south of the border, here's
Ben fucking Stein talking about the need for tax increases as well as government spending.
Oh yeah, and according to Mr. Stein,
Ronald fucking Reagan, the Gipper himself, raised taxes when he felt it was needed.
And then there's the
International Monetary Fund, hated by anti-globalixts and far-leftists the world over, advocating for higher taxes on the rich:
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The Washington-based IMF used its influential half-yearly fiscal monitor to demolish the argument that economic growth would suffer if governments in advanced Western countries forced the top 1% of earners to pay more tax.
The IMF said tax theory suggested there should be “significantly higher” tax rates for those on higher incomes but the argument against doing so was that hitting the rich would be bad for growth.
But the influential global institution said: “Empirical results do not support this argument, at least for levels of progressivity that are not excessive.” The IMF added that different types of wealth taxes might also be considered.
One thing I've seen from talking to and reading pieces by people on both the left and the right is the need for a streamlined, simplified tax system that would be easier and faster for businesses and individuals to fill out while also potentially generating more revenue by eliminating a lot of inefficiencies and loopholes. Here's former Parliamentary Budget Officer
Kevin Page:
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The need for broad-based tax reform in Canada has been building for the past few decades. Budgetary revenues relative to the size of the economy have fallen dramatically, reducing the capacity of governments at all levels to pay for programs and services in the face of aging demographics. Budgetary deficits have returned. Debt is piling up. The federal fiscal plan to manage the debt increase is devoid of strong commitments—In 2015, the Liberals campaigned on stimulative deficits of $10 billion a year over three years, with a return to balance in 2019. Deficit spending continues, with balance nowhere in sight.
Individuals and corporations have gotten used to tax reductions of all types. A succession of governments has become accustomed to delivering benefits to constituents through special programs called tax expenditures (e.g., accelerated capital cost allowances, charitable donations, tool credits, etc.). Every budget in recent years adds layers of complexity for taxpayers. Layer cakes are tasty and fun to look at. This is not the case with our tax code.
Similarly, concerns have been building about Canada’s relatively low productivity growth and its implications for our future standard of living. It is a good question to ask if we can better use the tax system to support growth and job creation. What if we reduced income taxes and payroll taxes and increased consumption taxes? Could we raise labour force participation rates? Could we increase investment? Similarly, countries everywhere are scratching their heads trying to find effective taxation systems for corporations and individuals in a world economy seemingly without borders. How big is the tax gap? How do we reduce tax avoidance?
CKA Uber 
CKA Moderator 
