OTTAWA—Despite outraged business and media reaction to the NDP’s demand for rescinding a new round of corporate tax cuts in return for supporting the Liberal government’s 2005 Budget, a strong case can be made that further reductions in corporate taxes are unjustified.
In a study released today by the Canadian Centre for Policy Alternatives, economist Andrew Jackson points to the fact that corporate profits have already soared to a record high, in large part because of the substantial business tax cuts enacted in previous government Budgets.