Introduction to Income Taxation: The Corporate Taxation Rate Introduction Corporate tax cuts do not spur growth; instead, corporate tax cuts may actually be an impediment to growth. Consistent talk about reducing corporate tax rates conveniently overlooks the fact that corporate tax rates have been trending downwards for several years yet our tax rates remain exorbitantly high. What follows is a review of the pros and con side of the debate and why corporate taxation simply leaves us with more prosperous corporations and a glut of under-employed or unemployed Canadians. The argument against increases in corporate tax rates The usual argument raised is that business tax relief will boost employment figures and will get Canadians back to...The end:
.....(Stanford, 2011, p.9). Rather than using those tax savings to help people, businesses are simply pocketing the difference. Conclusions The work of Stanford clearly gives the lie to the idea that corporate tax cuts will give more Canadians work; businesses have been given tax breaks for years and have not gone out and hired more people. The CCC notwithstanding, most people are aware that giving businesses a tax break is really akin to advantaging them to everyone else`s disadvantage. Works Cited Canadian Chamber of Commerce. (2011). Business tax relief is crucial to Canada`s economic success. Additional information not available. Stanford, J. (2011). Having their cake and eating it, too. Canadian Center for Policy Alternatives. Ottawa: CCPA.