Corporate tax cuts don't stimulate investment


Canadian Centre for Policy Alternatives

Governments tells us time and time again about the need to give business and corporation tax cuts so they will invest more money in good creation and infrastructure. All we've seen since the 2008 recession is business sit on the savings from these tax cuts rather than invest. 

The Canadian Centre for Policy Alternatives study, Having Their Cake and Eating It Too - Business Profits, Taxes, and Investment in Canada: 1961 Through 2010, written by Jim Stanford details how businesses are reaping the rewards of tax cuts, continue to bring in profits and still not reinvest in the creation of good jobs. As a means of stimulating growth, employment, and even private business spending, the historical evidence suggest that business tax cuts are both economically ineffective and distributionally regressive. 


Having Their Cake and Eating It Too Business Profits, Taxes, and Investment in Canada: 1961-2010

Date published: 

April, 2011

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