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Do You Think Cutting Corporate Taxes Will Create Jobs?

Cut Taxes Jobs
We all like to hear about tax cuts but often when it is focused around business breaks the personal tax payer becomes frustrated.  As we have mentioned before, often during an election taxes will become part of the different politician’s platforms, and sure enough for the latest Ontario Provincial election it has come to the forefront with at least one candidate.

 

Progressive Conservative Leader Tim Hudak is promoting a tax cut for corporations on the premise that if these businesses have to pay less taxes then there will be more money for hiring. Which as a result, would mean less unemployed individuals who may have to rely on unemployment insurance or other assistance.   So, as a personal tax payer, if this were true, then we would benefit indirectly in the end.   It would mean that some of our tax dollars that are now being dedicated would be going elsewhere.   Plus the newly employed would now be contributing to the tax account once again. In addition, the lowered tax rates would act as an incentive for new businesses to open in the Province creating even more jobs.

 

While it sounds like a workable plan the big question arises is how is this tax cut affordable when the present government is already shouting “poor”? According to Mr. Hudak, it would include cutting 100,000 public sector jobs.   Now as usual with politics this sounds like a double edged sword.   What is going to happen to all these public workers?   Will they not end up on the same government support systems that the newly back to work would have just come off of?    In addition to this, Mr. Hudak would reshuffle how grants are handled as part of this plan.

 

All of this is just part of a long term goal of the PC leader.   Unfortunately during an election it becomes a political battle ground where we as the public have to take sides, and it isn’t easy when there is so much controversy to try and mull through.

 

Looking at this one issue from all angles raises the question, does this mean downsizing jobs within the Government that are not necessary?   If so, from what departments would this take place?   If you have had to deal with any government offices lately then you may have discovered first hand that they already seem to be short staffed.

 

Many of us complain about taxes as well as the other critical issues that are taking place like health care, and unemployment.   Now is the time you can at least really weigh out what each of the politicians are touting and believing that their promises will come to pass decide whether their approach to taxes and these other issues are possibly an answer.

 

Leave your comments as to whether you think cutting jobs in the public sector, and lowering Corporate taxes is something that you think is workable.

 

Share Your Thoughts!

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Sam Seidman, CPA, CA, LPA
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