Welcome!

News Feed Item

January 29 is Corporate Tax Freedom Day

CLC report: Many businesses hoarding cash from tax giveaways rather than invest in creating jobs

OTTAWA, ONTARIO -- (Marketwired) -- 01/29/14 -- A research study by the Canadian Labour Congress shows that Corporate Tax Freedom Day occurs on January 29.

"Governments have slashed corporate taxes so deeply that in 2012 companies paid their share of taxes to all levels of government for the entire year by January 29," says CLC Secretary-Treasurer Hassan Yussuff. "We hold Corporate Tax Freedom Day to draw attention to the urgent need for the government to stop wasting dollars on tax cuts and start making sense."

Since 2000, the general federal corporate income tax rate has been cut almost in half, from 28% to 15%, and provinces have also been dropping their tax rates on corporate profits. "The years of tax giveaways have been good for business," Yussuff says. "Their after tax profit margins rose from 6.9% in 2000 to 8.1% in 2012."

Yussuff says, "In return for tax breaks, business has promised to invest in training, research and development and job creation but they have failed to do that. Companies have instead been hoarding cash and paying out fat compensation to their CEOs."

Cutting corporate taxes has not provided the investments needed to stimulate Canada's economy, Yussuff says. The average annual rate of economic growth between 2000 and 2012 was 1.14%, one of the longest periods of low economic growth in decades. Business investment in research and development fell from 1.13% of GDP in 2000 to 0.88% of GDP in 2012. Investment in employee training and skills development is down by 40% since the 1990s.

Yussuff says that unemployment has also increased during the years that coincide with corporate tax giveaways. "The official rate of unemployment in December 2000 was 6.8% and today it is 7.2%, but the real rate is about 14%. The potential of our work force, especially our younger workers, is seriously under-utilized."

So, what did lower corporate taxes really deliver? Yussuff says, "The answer is resounding, overwhelming and backed with clear evidence: corporate tax cuts delivered nothing - except windfall profits that haven't benefited the ordinary Canadians who paid for them."

The CLC study shows that between 2000 and 2012 the total cash reserves of non-financial private corporations in Canada grew from $182 to $541billion, an increase of over 300%. During the same period, CEO pay went sky-high. The average CEO compensation at Canada's largest non-financial corporations averaged $7.96 million in 2012.

Corporate tax giveaways costs the federal government billions of dollars in foregone revenues, Yussuff says. "To pay for its tax breaks, Ottawa has borrowed billions and driven up the national debt. Now, the government has chosen to make big cuts to public services in order to pay the bill for its tax giveaways."

Yussuff adds, "It's time to stop unproductive corporate tax cuts and demand that big business pay its fair share of taxes - and invest windfall profits in creating jobs and strengthening Canada's economy."

The report, What did Corporate Tax cuts Deliver? is posted on the CLC website at: www.canadianlabour.ca. Follow us on Twitter @CanadianLabour

The Canadian Labour Congress, the national voice of the labour movement, represents 3.3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 130 district labour councils.

Web site: www.canadianlabour.ca

Follow us on Twitter @CanadianLabour

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
SYS-CON Events announced today that IBM has been named “Diamond Sponsor” of SYS-CON's 21st Cloud Expo, which will take place on October 31 through November 2nd 2017 at the Santa Clara Convention Center in Santa Clara, California.
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
When growing capacity and power in the data center, the architectural trade-offs between server scale-up vs. scale-out continue to be debated. Both approaches are valid: scale-out adds multiple, smaller servers running in a distributed computing model, while scale-up adds fewer, more powerful servers that are capable of running larger workloads. It’s worth noting that there are additional, unique advantages that scale-up architectures offer. One big advantage is large memory and compute capacity...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In 2014, Amazon announced a new form of compute called Lambda. We didn't know it at the time, but this represented a fundamental shift in what we expect from cloud computing. Now, all of the major cloud computing vendors want to take part in this disruptive technology. In his session at 20th Cloud Expo, Doug Vanderweide, an instructor at Linux Academy, discussed why major players like AWS, Microsoft Azure, IBM Bluemix, and Google Cloud Platform are all trying to sidestep VMs and containers wit...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
In his session at @ThingsExpo, Eric Lachapelle, CEO of the Professional Evaluation and Certification Board (PECB), provided an overview of various initiatives to certify the security of connected devices and future trends in ensuring public trust of IoT. Eric Lachapelle is the Chief Executive Officer of the Professional Evaluation and Certification Board (PECB), an international certification body. His role is to help companies and individuals to achieve professional, accredited and worldwide re...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, pane...
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
New competitors, disruptive technologies, and growing expectations are pushing every business to both adopt and deliver new digital services. This ‘Digital Transformation’ demands rapid delivery and continuous iteration of new competitive services via multiple channels, which in turn demands new service delivery techniques – including DevOps. In this power panel at @DevOpsSummit 20th Cloud Expo, moderated by DevOps Conference Co-Chair Andi Mann, panelists examined how DevOps helps to meet the de...
No hype cycles or predictions of zillions of things here. IoT is big. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, Associate Partner at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He discussed the evaluation of communication standards and IoT messaging protocols, data analytics considerations, edge-to-cloud tec...
What's the role of an IT self-service portal when you get to continuous delivery and Infrastructure as Code? This general session showed how to create the continuous delivery culture and eight accelerators for leading the change. Don Demcsak is a DevOps and Cloud Native Modernization Principal for Dell EMC based out of New Jersey. He is a former, long time, Microsoft Most Valuable Professional, specializing in building and architecting Application Delivery Pipelines for hybrid legacy, and cloud ...
Amazon started as an online bookseller 20 years ago. Since then, it has evolved into a technology juggernaut that has disrupted multiple markets and industries and touches many aspects of our lives. It is a relentless technology and business model innovator driving disruption throughout numerous ecosystems. Amazon’s AWS revenues alone are approaching $16B a year making it one of the largest IT companies in the world. With dominant offerings in Cloud, IoT, eCommerce, Big Data, AI, Digital Assista...
SYS-CON Events announced today that CA Technologies has been named "Platinum Sponsor" of SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. CA Technologies helps customers succeed in a future where every business - from apparel to energy - is being rewritten by software. From planning to development to management to security, CA creates software that fuels transformation for companies in the applic...