Statement made on 03 February 2011 by Senator Grant Mitchell
Hon. Grant Mitchell:
Honourable senators, in the government's sixth report to Canadians on Canada's Economic Action Plan, the analysis was presented that for every dollar spent on a corporate income tax reduction, there was a 30-per-cent, or 30-cent, multiplier effect on the economy. In contrast, for general personal income taxes, the average multiplier effect was dollar-for-dollar. On income tax reductions for low-income families, the multiplier effect was $1.70 for every dollar of tax cut.
Why is it that, when confronted with the choice of making a tax cut, this government wants to give it to corporations rather than to families when clearly the multiplier effect, the impact on the economy and the ability to create more jobs will be as much as six times greater than from a tax reduction given to corporations?
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