Globe and Mail proves corporate tax cuts do not equal jobs

Here's an article from The Globe and Mail's Karen Howlett that supports the idea that corporate tax cuts do not necessarily equate to more jobs. Instead, The Globe and Mail's analysis shows that over the past several years as successive corporate tax cuts have been implemented, corporations have been hoarding their new found cash, instead of creating new jobs. There is nothing wrong with keeping corporate tax rates competitive with other industrialized countries. This puts Canada on the map when it comes to international corporations considering investment in the country. However, corporate tax rates alone will not be a factor. As I stated before, productivity needs to be a consideration. Administrative costs (such as payroll taxes, and the work required to fill out forms and reports), benefits to employees (such as health care), livability for a company's transplanted workers, etc. are just some of what corporations will also look at. This means that Canada doesn't necessarily need to strive for the lowest corporate tax rate. There has to be a balance. And if provinces want corporations to locate and grow in their jurisdictions, they have to do their part too, which is what the Province of Ontario just did by announcing the reduction of the provincial portion of the corporate tax rate. Getting back to the other factors that attract corporations, such as health care, there needs to be a balance between reducing the corporate tax rate and paying for social programs. The Liberals announced this tact in their election platform by balancing the corporate tax rate with the need to institute new spending that considers the needs of Canadians. I've been arguing that corporate tax cuts should not be instituted and instead, the money should go to social programs, but I don't know if raising the federal tax rate back to 18% (versus the current 16.5%) is necessarily a good thing, coming out of a recession. I believe that the demand for Canadian resources will create a greater growth rate than is projected, which will pay for the new social programs announced by the Liberals. However, it's difficult to predict this with any certainty. Unfortunately, foresight isn't as accurate as hindsight. The bottom line is that the Conservative message of killing the federal corporate tax rate cut, i.e. from 16.5% to 15%, is going to kill jobs is a bunch of unfounded fear mongering as the CONservatives grasp at anything and everything to hold onto their tenuous power.