Comment 59022

By A Smith (anonymous) | Posted February 01, 2011 at 12:59:14

Proline >> Corporate welfare cases always seem to win in the end. And once the deals are signed, what can the public do, other than have our incomes garnished to support it?

It gets better. In recent years (2000 - ), corporations in Canada have gone from being net borrowers to net lenders...

http://www.statcan.gc.ca/pub/11-210-x/2008000/t014-eng.htm

In fact, from 2000 to 2008, corporations added $383.2 Billion in cash to their balance sheets, around $11.2K per Canadian. In that same period of time, Canadians have taken on $272.1 Billion, or $7.9k per person in debt. From 1961 - 2000, people's savings used to fund corporate investments, now it is corporations funding our credit cards and mortgages.

Curiously enough, this shift in who gets to play banker came at the same time corporations saw their tax rates drop from 28% to 16.5%, federally and provincially from 15.5% (2000 Ontario) to 12% today.

In 2000, our economy was strong and Ontario corporations payed tax rates of 43.5%. Today, our economy is weak and the tax rate for corporations is 28.5%. The only difference is that corporations are sitting on lots of cash and average people are at record debt levels.

Whereas savings used to flow from people to corporations to fund business expansion, savings now flow from corporations to people to buy bigger homes and big screen T.V.'s. Excess cash on corporate balance sheets tells us that the economy is lacking new business opportunities to invest in, which also tells us that corporate tax rates should be raised.

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