Who Deserves More Money, Corporations or Families?
The next election is going to be a choice between two ideas and two parties. It is clear that both sides are not going to retreat on their stances. Although, who is right? Will lowering corporate taxes really create more jobs for Canadians? Or will lowering income taxes for families create more spending room?
Let us look at these two questions objectively. Harper’s corporate tax cut would lower the expenditures that all businesses have to pay to the government – this includes the really rich ones where the CEOs get regular bonuses. Ignatieff’s income tax cut would allow people, employed, unemployed, even bosses and CEOs to save more money because they won’t lose it all from the point that their pay checks are given. Either way, the richest will win the lottery; it is now a matter of choosing which plan would be beneficial for all. A 1% tax cut on a person whose income is $100,000 per year would mean a savings of $1000 annually. A 1% tax cut on a corporation that receives over $1 million in income would see a $10,000 savings on that income.
Both plans can fail at their objective: strengthen the economy. Just because a business saves $10,000 per million in earnings, doesn’t mean that new jobs will appear. Part of this money could go on renovations, reformatting, advertisements, raises, bonuses… the list goes on. A tax cut for the people could be used to pay down debts, buy new items, fix old items, balance budgets, pay for tuition fees, and accommodate the rising costs of food and other necessities of life.
Now that both methods have hit a dead end where neither can 100% guarantee a boost to the economy, we can point out that debt is the main reason why the recession happened. While both corporations and people are in debt, the most immune to the debt and the consequences that come with it are the companies and corporations who are mainly dependent on the free market.
In the end of the day, both these actions could ultimately have the same effect; it is now a personal choice. Do you want money to come back to your pocket? Or would you rather watch corporations who have the framework to deal with debt and economic slowdowns reap the benefits of a cut to the lowest corporate tax rate in the G7?
If you choose to give the CEOs a bit more breathing room to collect more bonuses, you would prefer the Conservatives. If you would prefer to get more for the dollar and have a little bit more breathing room financially – whether you would be a student, employee, layoff or parent – you would prefer the Liberals.
The next election will be a choice. Allow the Conservatives to strengthen the wealthy and strong or give the Liberals a chance to strengthen business by strengthening the framework of business – the worker, the consumer, the boss in person, the average Canadian family.
