Dead Money

[Static]

^^^^ I truly hope you do not shop for the lowest price. It is the customer that demands the lowest price that moves the manufacturing offshore.

[twobits]

It's also beneficial to shareholders to lay Canadians off and send jobs to Mexico or North Carolina.

If that is in fact how you see it, could you please explain to us plain folk out here that are not as investment savvy as yourself how increasing corporate income taxes in Canada would help with stopping companies with shutting down plants in Canada and opening replacement plants in N Carolina and Mexico were the cost of production is lower?
I mean seriously, I just can't get my head wrapped around your superior financial reasoning on how increasing corporate taxes discourages them from leaving the country altogether. I look forward to your analysis!

[goalie]

I don't know what dimension you guys live in but it's definitely a different one.

More than half of the federal government’s revenue in 2014 will come from personal income taxes -- a vivid sign that Canada’s tax burden is slowly shifting away from corporations and onto consumers. The federal corporate tax rate has been nearly cut in half since 2000 -- from 28 per cent at the turn of the century to 15 per cent in 2012

[twobits]

I don't know what dimension you guys live in but it's definitely a different one.

And apparently you live in the same dimension as Atoma so maybe you could also explain to us how increasing the Corporate tax rate is going to 1) Discourage companies from moving to a more friendly tax structure or 2) Encourage them to invest more of their after tax earned income (now less btw) as fast as you would like to see it reinvested? Are you seeing some glorious investment opportunities that these Board of Director's are not seeing? If so please share so I can throw a few bucks in that direction. In case your brilliant financial acuity has not noticed, cash, or very liquid investment returns barely keep up with inflation. So why do you think these moron executives are sitting on cash that barely keeps up with inflation? That really helps the golden parachute eh?
And given your brilliance in spending someone else's after tax savings is so finely tuned........I would suggest you toss out some resumes and let these bigwigs know they are not nearly as astute in capital investment as yourself.
Be sure to let us know when you have bought your suit and sitting at the table in the boardroom.

[twobits]

More than half of the federal government’s revenue in 2014 will come from personal income taxes -- a vivid sign that Canada’s tax burden is slowly shifting away from corporations and onto consumers.

And are the employees of these corporations not also consumers? Take away the company.....do you not also lose consumers with a job and disposable income?

The federal corporate tax rate has been nearly cut in half since 2000 -- from 28 per cent at the turn of the century to 15 per cent in 2012

See, here is your problem.....you can't get past corporate tax rates. If all other business input costs were equal, you would be right. But they are not. Wages are lower in other jurisdictions, so is energy, so is transportation to market, so are dozens of other input costs that eventually make up the final cost of a good or service. WE HAVE TO BE ABLE TO COMPETE. So if we need to pay higher labour costs and higher energy costs yada yada yada, how do you think the equation gets balanced out?

Try to talk your buddies into accepting the same wage rate in N Carolina where they can deduct their mortgage interest off of personal earned income and then you might begin to understand why our corporate tax rates need to be lower than they are in the US. Among 3 dozen other similar reasons? How bout you attack the US Gov't for letting people write off their mortgage interest payments against income instead of your Gov't lowering Corp tax rates trying to keep you employed?

[Atomoa]

This is a discussion about Canada, which is a great place to do business.

We have hordes of wealth here and we sit ontop of the list of the best countries in the world.

A shift of cash worth 20% our GDP moved from Canadians hands, to a few hundred peoples bank accounts. All our taxes went up and our services went down.

We have one of the the lowest corporate taxes in the world. Reinvestment did not occur and historically does not occur. Upping the tax rate 5% (lets say?) would still keep Canada in the bottom class of world corporate tax rates, while providing billions of tax dollars for all Canadian's. We just lost out on 11 billion since 2008-2013.

Does Canada want to become a Cayman Islands? Is that the push against raising the rate? Canada offers a highly skilled and healthy labour market with constant surplus labour. Always unemployed people in surplus and it's kept that way for the business class. Great court protection and communication and overall infrastructure. Abundant natural resources. These are huge draws. This great business climate all costs money to maintain - not something we shouldn't charge for.

If a low tax rate means reinvestment there wouldn't be a giant horde of money sitting there doing nothing. The government just finished stimulating the economy, and we all got better roads and buildings in the process. That came out of our pocket more that "their" pocket. The top enders didn't do anything with the money that we gave them and as we all know the well is dry from the peasants pockets. Austerity indeed.

It's a election year and this is everyones country. How we share this place and it's resources effects us all.

[logicalview]

This is a discussion about Canada, which is a great place to do business.

Thankfully, as leftists have not had their grubby and insanely stupid hands on our government since the Trudeau era.

We have hordes of wealth here and we sit ontop of the list of the best countries in the world.

There are hordes of wealth as you call it in almost every country in the world.

A shift of cash worth 20% our GDP moved from Canadians hands, to a few hundred peoples bank accounts.

What the hell are you talking about? This isn't even remotely true. Even the dumbest leftists here can see that this is a complete lie.

All our taxes went up and our services went down.

They did? When? Who is "our" in this statement? Because it doesn't include you and me, as I don't want to be lumped in with you, in anything.

We have one of the the lowest corporate taxes in the world.

I believe you mean "corporate tax rates" and this isn't true. There are many countries lower than Canada. The UK is 5% lower than Canada, for instance.

Reinvestment did not occur and historically does not occur.

What? This isn't true! What a joke.

Upping the tax rate 5% (lets say?) would still keep Canada in the bottom class of world corporate tax rates,

and would remove 5% from capital spending budgets, which would mean fewer jobs, which lowers personal income tax revenues, but of course, let's just always consider every tax increase to every segment in a vacuum. It detracts from the overall diatribe of pure BS if we consider all of the other facets of a tax increase like economic effects etc.

We just lost out on 11 billion since 2008-2013.

I assume like all of your other stats that this $11 billion number was just pulled right out of your rectum, or pulled out of some leftist think tank's rectum. Just pure nonsensical idiocy.

Canada offers a highly skilled and healthy labour market with constant surplus labour.[/quote]

Unless you want to get an actual job that is hard. Then for some reason there doesn't seem to be much of a surplus.

Always unemployed people in surplus and it's kept that way for the business class.

Yes. we can't blame anyone else but the "business class" for why people are unemployed. What a joke. See, its stupid statements like this that make you your own worst enemy.

It's a election year and this is everyones country. How we share this place and it's resources effects us all.

Great! So then lets all vote Rhino Party!

[Atomoa]

http://www.theglobeandmail.com/news/pol ... cle612395/

"Finance Canada's estimate of the costs of the planned corporate tax rate reductions appears to be understated," according to the report. Reducing the corporate tax rate from 18 per cent in 2010 to 15 per cent in 2012 is estimated by Finance Canada to cost $10-billion from 2011-12 to 2013-14. The PBO estimates the cost would be $11.5-billion.

[Static]

^^^^big deal.

[logicalview]

"Finance Canada's estimate of the costs of the planned corporate tax rate reductions appears to be understated," according to the report. Reducing the corporate tax rate from 18 per cent in 2010 to 15 per cent in 2012 is estimated by Finance Canada to cost $10-billion from 2011-12 to 2013-14. The PBO estimates the cost would be $11.5-billion.

but what does this even mean? Cost what? To whom? And how do you measure the increase in personal tax revenue that was generated by corporations spending more money? Unless there is some sort of methodology presented here, these numbers are completely meaningless.

[twobits]

Those, as you know logi, are selective soundbites. The leftists have mastered it to the point that they could take a study conducted by the Fraser Institute, pull and carefully place some quotation marks around a snippet of a sentence, and pronounce the Fraser Institute supports communism.

[bob vernon]

Over $600 billion sitting there, waiting to be invested. So there's a big supply of money. Shouldn't that mean that the interest rates for borrowing would remain low instead of increasing later this coming year? The Harperites are in violation of their first commandment, namely allowing the market place and supply and demand to set prices. An artificial increase in interest rates only helps those who have this oversupply of money. The banks and the wealthy.

[GEW]

Over $600 billion sitting there, waiting to be invested. So there's a big supply of money. Shouldn't that mean that the interest rates for borrowing would remain low instead of increasing later this coming year? The Harperites are in violation of their first commandment, namely allowing the market place and supply and demand to set prices. An artificial increase in interest rates only helps those who have this oversupply of money. The banks and the wealthy.

The government has said they were going to increase interest rates every year for the past 5 or so; but they have held the line. I doubt they will this year either.
Who benefited from the historically high interest rates in the early 1980s? It sure wasn't middle class homeowners. What was the corporate tax rate then?
Also, don't you think that higher interest rates, might benefit the "little guy" with RRSPs and other savings?

[logicalview]

Over $600 billion sitting there, waiting to be invested. So there's a big supply of money. Shouldn't that mean that the interest rates for borrowing would remain low instead of increasing later this coming year? The Harperites are in violation of their first commandment, namely allowing the market place and supply and demand to set prices. An artificial increase in interest rates only helps those who have this oversupply of money. The banks and the wealthy.

Nothing in this paragraph made any sense, if you have even a basic understanding of economics.

[Static]

Over $600 billion sitting there, waiting to be invested. So there's a big supply of money. Shouldn't that mean that the interest rates for borrowing would remain low instead of increasing later this coming year? The Harperites are in violation of their first commandment, namely allowing the market place and supply and demand to set prices. An artificial increase in interest rates only helps those who have this oversupply of money. The banks and the wealthy.

The $600 billion is already invested, just in low risk and liquid assets. I didn't understand the rest of your post.