October 30th, 2020

Corporate tax cuts aren’t the solution


By Letter to the Editor on November 23, 2019.

As a justification for his harsh budget and cuts to the elections investigator who is currently investigating him, Jason Kenney tells us that Alberta has a huge debt problem with the highest debt per capita of all the provinces. And while this is true, most economists use debt per GDP. Alberta has the lowest debt per GDP of all the provinces in a country which has the lowest dept per GDP of all the countries in the G7, one of only two countries in the world with AAA credit. With historically low interest rates, the dire straits that Kenney would have you believe about Alberta’s debt is just not that dire. At least it wasn’t until Kenney gave the largest and richest corporations a $4.7-billion tax cut.

The justification Kenney gives is that it will stimulate investment and jobs and will pay for itself in increased tax base. History has shown that tax cuts have not over the past 40 years in Canada or the U.S. paid for themselves. Kimberly Amedeo MS Management, MIT sums it well: “Tax cuts are not the most favoured solution for significant job creation É Politicians who claim tax cuts always raise revenue misinterpret the Laffer Curve.”

So, the UCP’s budget for this year is $1 billion higher than the NDP’s proposed budget and they don’t plan to return to a balanced budget until the same year as the NDP budget plan, if at all, given Kenney stakes it on the tax cut paying for itself. In the meantime, Alberta students, teachers, police forces, the handicapped, cities and rural communities – oh yeah – and election investigations will have to tighten their belts to pay for Kenney’s corporate tax cut that probably will not create many jobs or pay for itself.

Infrastructure will have to be built and maintained, we can put it off but we cannot avoid it.

Borrowing to pay for infrastructure when prices and interest rates are low and to give the economy a nice boost and that is a proven job creator makes way more sense than borrowing money to give wealthy corporations a tax cut. If government debt to pay for needed infrastructure, schools, bridges, highway twinning, etc. upsets you, then government debt to pay for corporate handouts and then using the manufactured crises to justify harsh, sometimes cruel cuts, and obstruction of justice should make your blood boil. It does mine!

Jerry Strate

Lethbridge

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Fedup Conservative

Well said Jerry you are right on. Now watch the ignorant seniors that aren’t smart enough to understand it come out to hurl sarcastic comments at you. I keep harping about seniors because it’s only seniors that my senior friends see doing it. The young people listen and agree with the true facts when they are presented to them, the seniors deny them. That’s what Klein and Kenney have taught them to do.

diplomacy works

Nicely put.

Unfortunately, Kenney’s and ideologue and truly believes in tax cuts and that the poor and middle classes should subsidize the super wealthy.

Who enjoyed watching Encana and Husky rake in their tax cuts as they cut jobs and fled Alberta?

Presumably Kenney and the Cons relished what others see as theft.

biff

excellent letter – nailed.
i cannot understand why there are so many that support lining the pockets of those that are loaded, and grandstand against the use of public money to support public needs. ignorant does not begin to define those people. we have now had about two generations worth of this bs – supply side, trickle down economics – and the incredibly stupid, and the incredibly greedy continue to support this massive lie.

phlushie

Just goes to prove that the only realistice thing about the Conservatives is the first three letters “CON”.

George McCrea

The writer of this letter indicates that he worked at a local company. Further it lists him as the President contact. The corporate tax reduction for “rich friends and corporations” is actually across the corporate landscape, including those wind,solar and green companies the global warming club is in love with. And oh, yes, the letter writier’s company/former company will benefit from these corporate reductions as well. Humbug on the letter.

Fescue

You know, George, that some people can see the truth of things even though they might profit from the lies.

George McCrea

That’s a pretty lazy excuse. Hypocritical. Bite the hand that feeds you. Or on a happier note. I got mine so screw everyone else.

Fescue

The difference, of course, is that no corporation asked for the tax cut. It is simply a bribe to get them to look the other way while this government dismantles civil society.