Actually, as someone in charge of hiring and firing for a small business, yes. Yes they will. But more importantly it might mean the difference between more layoffs this year and not having to lay anyone off.

I don't think most people understand the two business tax rates and how that works. Our General Business Tax rate has come down multiple times over the last several years and are already the lowest in North America. They do their job already to attract businesses and don't need further reduction. This is like saying 'lets give the rich people who already heavily utilize many write offs and tax shelters more tax breaks and charge the little guys instead'.

Small Business taxes on the other hand haven't gone down at the same rate as the General rate has fallen, furthermore this is the area that has been hardest hit by the current economic climate and is where the jobs loss we have seen actually increasing in the last couple of months is coming from.

The Economists that I've been reading actually (and I thought hell froze over) applauded the fact that Layton's been very up front about his plans as to where we need to increase money coming in (CPP and the General Business Taxes) and where the decreases are most needed.

I'm not an NDP supporter by any stretch, but I'll give them credit where it's due, this is a more realistic plan then the Cons are presenting.

Please tell me how a tax credit for hiring will prevent layoffs? or why a company considering layoffs would hire for a tax credit?

My parents have run small businesses since I was 8yo, I've seen the ins and outs. They have hired when there have been tax reasons to do so, yet the hiring was rarely permanent.

I do agree on the rest. Small business actually creates the most jobs, big business tends to lose jobs over time. Thus any platform that targets small business will be the leading generator of job growth.

Yet the corporate tax cuts aren't to entice existing corporations hire more, its to entice corporations to move here, or not leave here. When a corporation leaves, the jobs are gone for a very long time. Ontario manufacturing is the best example, those jobs are gone, possibly for good due to bad Ontario taxation policies at the provincial level.

So I agree with both the Cons and the NDP, less business taxation. Afterall, it is the end consumer that pays 100% of all taxes, as business just wraps any taxation into the final price. Thus tax the consumer directly, not the business, and remove layers of administration, waste and red tape.

:failed:

You forget that Canada has the population of a US state, and that we live in a global world.

Tories misinformed Parliament on G8 fund, may have broken law: auditor general

http://www.winnipegfreepress.com/can...119595104.html

I do agree with you on consumer base taxes (hence, I'm pro HST).

but personally, I think corporate taxes (not small business) need to be increase, that's right, increase.

Here are my reaons:

Corporations are just hording cash (T-bills treasuries etc), and doing so in an ever increasing amount. The extra tax savings are not going to what the tax cuts are intended to do and thats to create more jobs, increase production, investment on new technologies that increase productivity.

Many corporations just find ways to reduce their main cost, which is LABOUR. The shareholders and Board wants executives to increase profits, and the best way of doing that is to reduce staffing costs, since employees are generally the largest costs to an organization.

When you say the point of tax cuts is to prevent companies from shipping overseas to China or the states etc. Many of these companies are shipping because there is a competitive advantage there that BC/CANADA can not compete with. We can't compete with cheap textile china companies or manufacturing of certain goods. Ontario should not have manufacturing in industries that they do not have a competitive advantage, you can't compete with cheap labour and inputs, no matter how low the taxes are.

Now I'm not saying we should be dramatically increasing the corporate tax rates, I'm just saying that it should be slightly higher than what it currently is, given that we are at one of the lowest rates of all developed countries ( I believe Britain recently moved to lowest).

All I know is the gap between the rich and poor is ever increasing, and that can't be good for all of us.

on a side note, heres a study on corporate tax cuts, however the reasons may be due to some other factor(s):


http://www.financialpost.com/Corpora...343/story.html

I agree on this comment. Tax Credits do not prevent layoffs or cause businesses to hire.

It's like how we get tax credits on transit passes. If i dont ride the bus or dont have any money/income, its means nothing to me.

If the only reason companies are staying here is our tax rate our country is :failed:. Lowering tax rates is just a race to the bottom. One place lowers its rates another place to compete lowers there's even further. It goes back and forth until the tax rate is zero and then we are going have to start paying companies to stay here. We have to provide something more than lower tax rates to to keep and attract companies here.

I think your definition of what a 'small business' is is a lot smaller then it is in reality. To get the Small Business tax rate, we're talking about companies that make less than 3 million / year.

That's not that small. If my business does just under that in business a year, a 2% cut in the Small Business Tax rate saves nearly 60,000 a year which is one or two full time jobs that are protected if they're not made.

A lot of people see 'small business' and think one or two person shows out of a home office, but that's not the case. Those companies that fall into that category are a great deal larger and many of them have MANY employees. Many are francises of companies so you might mistake them for big business (Tim Hortons, Telus and McDonalds come to mind quickly), or they're private and highly specialized retail places. Many of the places that you all deal with for your car stuff probably fall in this category as well or any other place where there's labor intensive work that's not managed by a large corp.

Adds note:

azndude69> I would agree, I think the general rate needs to go up. The large corps have WAY too many tax shelters and while they theoretically pay 12% taxes, they in reality pay WAY WAY less then that.

In the global economy it is a competition, look at how much tourism Vancouver has lost to Seattle in recent years as its cheaper to do business there. Look at how much film industry has come back to BC after being enticed south by our strong dollar, or to Ontario for tax incentives.

If you don't compete, then you cannot win.

As for providing more: what pray tell would you suggest our economy provide? we have low productivity and high costs of living. Tax incentives are the best means for us to compete.

I keep referencing the employee tax credit, you keep referencing the business tax decrease. That's the issue.

Small business is 0-100 employees. That's small enough that no tax credit is going to encourage hiring. A tax cut may help, yet if you notice the many empty commercial spaces you'll realize that even a tax cut isn't the answer - the economy needs to improve.

The economy will only improve when people have more $$$ in their pockets to spend - and this means less wasted by government since we're not going to inflate our way out of this mess.

Ah I don't think the hiring tax credit is worth while. Small business needs the $$ but they don't get it. It's only another tax shelter for larger businesses.

I totally agree with you that economic stimulus is what we need most right now.

You have to look at why corporations are hoarding cash - its no different than why many of my investments are in cash currently. The financial markets basically suck right now, the risk isn't worth the reward, so many are sitting on the fence waiting.

The biggest problem with corporate taxes are the loopholes that allow them to go to zero. Close the loopholes, institute a flat tax.

As I pointed out in a post above we're uncompetitive right now, low productivity and high costs, so tax incentives are the best way for us to compete. Tax incentives allow us to compete financially, and allow companies to spend $$$ to become competitive (new equipment, more employees, ...)

I agree on this. Its loopholes that cause this. Warren Buffet has said this before, that his effective tax rate is less than his secretary's.

As long as that stimulus comes from freeing up wasted $$$. Borrowing against our future doesn't work unless we can inflate our way out of it, which doesn't seem likely since our main trading partner has been in the dumps for 5 years with no end in site, and Chinese growth is slowing down.

I agree.

And I believe that increasing the General Corp tax rate IS a good way to generate that money. Because it DOES have to come from some where.

oh dear.

http://www.cbc.ca/news/politics/cana...ag-fraser.html



Tories misinformed Parliament on G8 fund, may have broken law: auditor general

http://www.winnipegfreepress.com/can...119595104.html

Was just about to come post that. Thanks.

After all this shit has come out, you'd have to be nuts to vote for the conservatives.

http://www.calgaryherald.com/life/42...?size=620x400s

"I'm not listening"

Canadians do NOT care.

Latest stats show it too. Harper's scores keep going up, while the other leaders stay flat.

BC marijuana Party

I'm canadian and I care.

Ffs taylor can you stop saying "canadians don't care". You sure as hell don't represent my views and a majority of canadians.
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No.

The Conservatives are still polling high despite the political controversies and the opposition parties not harping on the political controversies.

Need further evidence? You may care, yet your vote will be lost amongst the overwhelming majority that do not care.

A quote from Iggy:

A quote from Fraser:

If you cannot read between the lines, she's not taking credit for the leaked report, meanwhile the Liberals are already jumping on it... makes you wonder who leaked it, and if its actually real.

For those who care, they may wish to consider that, especially since the strong caution from from the AG herself. Remember, she also exposed the Liberal sponsorship scandal so I trust her word over Iggy jumping on it. Yet the rest of us will continue not caring.