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Higher corporate taxes will ultimately hurt Canadians

Higher corporate taxes won’t help Canadians they will hurt Canadians. Increasing them will further discourage business investment in Canada and force successful Canadian companies to either constrain or cancel any growth plans. New taxes on profits will hurt consumers, employees, suppliers, and investors.

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Wesley Crawford

This Liberal government wants to take enough of everyone’s money and give out tax rebates as a way of making people dependant on the government. Its never a surprise when Liberals raise taxes, it just seems to be the easier way and they always take it.

6th March 2024 at 7:54 am
Cathy

They actually reduced personal federal income tax for middle earners

6th March 2024 at 11:15 am
RJKWells

It is painful to watch the Liberal Party trapped in their shift to the left. By continuing to secure the support of a fringe party in their short-sighted quest to maintain power, they fail to see that this comes at a cost to their electoral fortunes.

At its convention last fall in Hamilton, NDP dogma was on full display for everyone to see. Their only solution to big government’s growing revenue dilemma always came down to more taxes for key groups – corporations and their favorite target, the rich. It’s the same old story, with the same old ending. Taking more from those who actually create wealth in our country will only get them less. Capital is fluid and can more easily shift to other markets, out of the grasp of governments. They will fail, but that won’t stop them from trying to pull everyone else around them down, especially the Liberals.

Monday’s federal byelection in Durham should be a signal that Liberals must tack back towards the center if they ever hope to regain the confidence of voters. Leave the fringe parties to their extreme views and instead focus on the actual needs of Canadians. That doesn’t include taking more of what we earn away from us.

6th March 2024 at 9:31 am
Michael F

And Charles Sousa won the by-election for the liberals in Mississauga South in December 2023 with 51.5% of the vote. It was a safe conservative seat in Durham and low voter turnout for both. And I wouldn’t call the NDP a fringe party. Tommy Douglas is a Canadian hero.

6th March 2024 at 11:56 am
RJKWells

Tommy Douglas may be your generation’s hero, but most today would be hard-pressed to tell you who he was and what he stood for.

If he were around today, the last party he’d find a connection with is the NDP, such being its drift into radical obscurity.

6th March 2024 at 2:36 pm
Bruce Westmoreland

If the government ran like a business it would’ve been bankrupt long ago. But that’s exactly where we’re at. And, they’re going to take everyone with them. But don’t worry, sunny ways folks, sunny ways.

6th March 2024 at 7:50 am
Paul Attics

If the fire department ran like a business it would’ve been bankrupt long ago.
Sounds silly when framed that way, doesn’t it?

What the fire department and all governments should be is fiscally responsible, with a bias for prudence, fairness, efficiency, return-on-investment (bang for buck), and long-term time horizon.

The current Federal government has not been fiscally responsible IMO.

6th March 2024 at 8:45 am
Michael F

Conservatives conveniently forget about NAFTA being torn up by the megalomanic former president and a global pandemic when talking about this government’s performance.

6th March 2024 at 11:50 am
Kim Morton

Raising corporate taxes is just a way to make low information voters feel good about paying ever more taxes. For some reason, they simply do not understand that the cost of corporate income tax is built into the retail price of everything they buy. Another reason why economics must be a mandatory high school class.

6th March 2024 at 10:22 am
Cathy

I manage our Corp tax for our company so not necessarily a low information voter. Maybe more middle to upper range. Wage growth in Canada went up 2.47% from 1992-2023. Tell me how that compares to Corp CEO compensation in same times frame. It’s fairly stunning. Major disconnect with this model.

6th March 2024 at 11:37 am
Paul Attics

From the perspective of the Business Council of Canada, anyone could have written this boiler plate plea that any tax increase is bad for everyone! In short, Taxes up is bad. Taxes the same is not so good. Taxes down is great. Are taxes at an effective and/or appropriate level to meet the needs of the very society that enables business to flourish? Who cares apparently?

It reminds of similar pleas written by chambers of commerce when a new holiday is proposed. Jobs will be cut and regular people will ultimately suffer!…and once enacted, nothing changes except workers have one more day to spend with their families.

Based on the arguments, why not eliminate corporate taxes altogether if the benefits to regular folks are so “obvious”? The answer is that ANY tax increase is framed just like the new holiday, a looming disaster for everyone.

Why doesn’t the Business Council of Canada spend its lobbying money on promoting fiscal responsibility (prudence, fairness, efficiency, return-on-investment bang-for-buck, and long-term time horizon) by the Federal government? Oh, because the mission is to protect the near-term profits of their members, at the expense of citizens and society if necessary.

6th March 2024 at 9:41 am
Cathy

Excellent points Paul. We need to find a fair balance and certainly hold government to be fiscally responsible which is never easy. Our current Ontario conservative government is a huge disappointment. Would love to know dollar amount spent on court cases in last 6 years.

6th March 2024 at 11:26 am
Ray Howarth

Paul,
As usual, you provide balanced and prudent comments. However, your summation seems to be out of sync with your usual balance. What is your take on lowering corporate taxes on publicly traded corps? In an ideal world they would then raise dividends, which would be taxed at the personal level.

6th March 2024 at 12:04 pm
A. Chezzi

Regarding Poilievre’s winning message….people hear what they want to hear. If people dug deeper into Poilievre’s simple message, they would find that it is straw. Luckily for Poilievre, people don’t check facts because it takes time and effort. Most people want a simple solution to complex issues. It makes them feel good and that is enough for them. If Poilievre governs as he is campaigning, and there is no doubt that he will, Canada is in for a rough time. His promises are dust and he will last one term unless he tries to suppress the vote as he did when he was minister of democratic institutions. No doubt he will try again giving that piece of legislation some grand title to cover up it real reason for being.

6th March 2024 at 8:24 am
Cathy

I wasn’t going to bring politics into this But ….
It’s so unfortunate Pierre is who we have to vote in. While he’s a master at sound bites and swaying opinion. I fear having him in power. He’s pretty lacklustre politician in terms of policy and way too far right for my social conservatism.

6th March 2024 at 9:04 am
Michael F

No one hs to vote for Poilievre in the next election. Most Canadians don’t want social conservatives and bigots leading the country.

6th March 2024 at 1:14 pm
Dauna Crooks

The article supporting big corporations was a complete throwback to trickle down economics. It has never worked in the US or Canada. Corporations and the extremely wealthy should be taxed at a higher rate than most Canadians. The article presents a highly conservative point of view with threats to Canadians should tax increase for that category. Then the article on Polievre indicates he is thinking the opposite in attempting to support “ordinary” Canadians.
Perhaps should comment on this disparity.

6th March 2024 at 9:05 am
Al Raftis

This is not about trickle down economics. You can tax corporations all you want but it eventually costs all of us more in higher prices. Unfortunately the citizens pay all taxes in the end. Wealth is only created by the private sector. Virtually all government money comes from private corporations and their employees. Wealth is created from a healthy corporate sector and a growing economy. Unfortunately Mr. Trudeau’s government is obsessed with social issues while our economic growth and productivity is among the worst in the Western world. Everyone’s standard of living suffers in the longer run.

6th March 2024 at 9:53 am
Cathy

Al, we have pretty healthy corporate wealth in Canada but is that the only basis for thriving economy? I think the US has turned the trickle down thinking on its head by choosing to flesh out the middle class and their economy has been positively impacted. We don’t want to end up like third world country with a very small percent of extreme wealth, small middle class and large low socioeconomic class – sets us up for all the down sides of that model, including unrest and increased crime.

6th March 2024 at 11:22 am
Cathy

I don’t buy into this trickle down economics anymore.
Corporations have gotten away with pushing down wages to create massive profits and wages for for executives. And that’s a huge contributor to housing affordability. Wages are so suppressed it’s come to a tipping point in damaging the economy. My and my lawyer husbands wages have been pretty flat for over a decade. I see first hand the CEOs & certain positions whose wealth is ballooned pay gap ranges but about 250x average income. While middle to upper middle class being squeezed at every angle. Without disposable income, people are not spending like they had and it’s affecting taxes. Can’t squeeze money from a stone. Please don’t talk about protecting Corporations when people with years of post secondary to achieve high level professional careers are struggling. There is something wrong and it needs to be addressed.

6th March 2024 at 8:40 am
Lauraine

When publically traded corporations post record profits, and higher record profits, again and again. something is not working for the country. most of the shares held in these corporations are foreigners, so this argument is 1950’s at best.

6th March 2024 at 12:28 pm
Don Morris

This is a obvious isn’t it. Corporations don’t pay taxes,their customers do it for them. Even government financial, wizards should know this.
Canada needs corporate tax levels to be among the lowest in the developed world. We have already chased investment away via onerous environmental regulation and over bearing “red tape” on any project, so there must be a balance and that is to lower the tax rate, even if it does outrage socialist elements.

6th March 2024 at 11:59 am
Ray Howarth

Tax, Borrow, Spend, Impose & Regulate.
A formula that will ensure the downfall of us all.
Canada is indeed broken under the leadship of these fools.

6th March 2024 at 11:48 am
Peter Neilson

It’s a lesson that should have been learned long ago, based on the history of virtually every “progressive” 😆 party that has ever tried it. Unfortunately, governments run by strong idealistic interventionist principles are guided more by their simplistic, unquestioned “ideas” than they are reality or experience, and their innate penchant to “Stick it to the man” is so ingrained, they will never stop trying. They will burn the country to the ground to blindly lord over their idealism rather than admit they are wrong, learn from their mistakes, and adapt.

6th March 2024 at 10:40 am
Greg Wilbur

The chosen article was very trite as a serious policy viewpoint. It reflects badly on the hub that you would publish it, especially as your lead article.

6th March 2024 at 11:56 am
Jeff Hanks

BS

6th March 2024 at 7:22 am
Michael Bath

As I understand it, Tesla, Meta, Amazon etc. don’t pay corporate taxes in Canada simply because they’re not headquartered here. The same would apply to any large Canadian corporation that moves its HQ south of the border. What a corporation pays depends on federal and provincial/state tax rates.
For example, in New York state The US federal rate is 21% added to the state tax of about 7%, so 28%. In Québec the federal rate is 15% added to the provincial of 11.5 %, so 26.5%.
A 1.5% difference doesn’t give Canada’s gov’t much room to play with. North Carolina’s rate is 2.5%.

7th March 2024 at 6:22 am
Steve

As Ronald Reagan famously said: “Business doesn’t pay taxes. It collects taxes.” Corporations are a coalition of employees, cutomers and owners and they pay the taxes in varying degrees depending on the competitiveness of the industry. Employees pay by slower wage growth or even not being hired in the first place. As employees, customers and owners look for better jobs/prices/returns elsewhere, the business shrinks and economic activity falls. Do that across an economy and standards of living fall.

6th March 2024 at 12:47 pm
Michael F

Corporations in Canada with their political activities and lobbbying have successfully shifted the tax burden in Canada away from corporate taxes to personal income taxes over the last 40 years. The CRA needs to stop and close loopholes allowing corporations to shield themselves from taxes and a global treaty is necessary for this. The truth is most Canadians work for small businesses and these small businesses don’t usually have huge taxable incomes because most profits are drawn out of the company as salary or dividends.

6th March 2024 at 12:02 pm