The negative effects of corporate taxes on investment and on workers
Governments have made considerable efforts in recent years to reduce the tax burden of business. The federal government has promised to reduce the corporate income tax rate even further, toward a rate of 15% in 2012. The Quebec government’s last budget highlighted the complete elimination of the capital tax, which will take effect on January 1st, 2011. This is very good news, because corporate income taxes and other taxes paid by businesses have an impact not only or even primarily on shareholders, but also on workers, especially in an open economy.
Workers are the first to suffer from corporate tax hikes, according to the Montreal Economic Institute :: Media Release, December 8, 2010
|Interview with Vincent Geloso (BNN, February 9, 2011)|