NDP Platform Policies

[Harry]

Focusing on job creation in Canada.

NDP would hike corporate taxes but reward local job creators

As prime minister, I wouldnt use your hard earned tax dollars to reward companies that ship jobs to the States or overseas, he said, surrounded by saws and lathes in the large workshop. Ill target investment to create jobs right here at home. Ill reward the job creators.

If the NDP formed the government, Mr. Layton said he would cut the small business tax rate to 9 per cent from 11 per cent. But he would also boost the corporate tax rate to the 2008 level of 19.5 per cent from its current 16.5 per cent.

The Conservatives have promised to cut corporate taxes to 15 per cent. Mr. Layton has long complained about that reduction, saying the Tories are rewarding big businesses that are not committed to creating and maintaining jobs in Canada.

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Ill ensure that Canadas corporate tax rate contributes to our competitive edge, Mr. Layton said. But the Conservative money for nothing scheme has led to the disappearance of 600,000 family-supporting, highly skilled jobs, many of them in communities like Oshawa.

The New Democrats would also bring in a job creation tax credit for employers of $4,500 for every new hire. And they would extend the capital cost allowances for the next four years.

Mr. Layton is spending Wednesday in the Greater Toronto Area, reaching out to voters who are still feeling the pinch of the recent economic recession.

Canadas unemployment rate is at 7.8 per cent and employment has risen by 1.9 per cent over the past 12 months as the country crawled back from the economic downturn. But, in Oshawa, the jobless rate remains high, at 8.7 per cent.

http://www.theglobeandmail.com/news/politics/ndp-would-hike-corporate-taxes-but-reward-local-job-creators/article1962985/

Edited March 30, 2011 by Harry

[M.Dancer]

The great thing about NDP policies are that they will never see the dire consequences of their stupidity.

[Harry]

And who has run up the biggest debt and deficits in Canada's history? Hint: It wasn't the NDP.

[Evening Star]

Yeah, this doesn't seem like an obviously stupid idea to me. We take progressive taxation as a given when it comes to personal income tax. And we had those corporate tax rates just a few years ago so it doesn't seem like a radical proposal or anything.

Edited March 30, 2011 by Evening Star

[M.Dancer]

Yeah, this doesn't seem like an obviously stupid idea to me. We take progressive taxation as a given when it comes to personal income tax. And we had those corporate tax rates just a few years ago so it doesn't seem like a radical proposal or anything.

Except that economy is not an aparteid state. Many many small business exist as suppliers to large businesses and if you make things adverse for big business, you make it adverse to those small businesses who depend on orders from big business.

[M.Dancer]

And who has run up the biggest debt and deficits in Canada's history? Hint: It wasn't the NDP.

Who has created the best business climate and by extension the most jobs?

Hint: It wasn't the NDP either...

[Evening Star]

Except that economy is not an aparteid state. Many many small business exist as suppliers to large businesses and if you make things adverse for big business, you make it adverse to those small businesses who depend on orders from big business.

I'm not sure that bringing back corporate taxes to 2008 levels is actually causing adversity for big business though. Big businesses seemed able to get by before then as well. They're just talking about balancing the tax burden in a slightly different direction and directly promoting domestic employment with a tax incentive for hiring Canadian workers.

[Evening Star]

Who has created the best business climate and by extension the most jobs?

Hint: It wasn't the NDP either...

Who would you credit with this, out of curiosity?

[M.Dancer]

Who would you credit with this, out of curiosity?

There have been two of late

The Chin that walks like a man...

The Admiral of the Vanuatu Fleet

[M.Dancer]

I'm not sure that bringing back corporate taxes to 2008 levels is actually causing adversity for big business though.

So you seem to think that imposing higher costs would not lower profits?

How does that work?

[Evening Star]

I meant that I'm not sure that tax rate would necessarily be a crippling or insurmountable adversity for major corporations.

(I'm guessing the "Chin who walks like a man" is Mulroney but I'm still puzzling out the Admiral one...)

[Shady]

I meant that I'm not sure that tax rate would necessarily be a crippling or insurmountable adversity for major corporations.

Is that the new measuring stick? Tax rates just under what would be crippling? Either way you keep moving the goal posts. First it was term adverse. Now it's crippling. However, higher costs through higher taxes doesn't make things easier for businesses. It's common sense.

[M.Dancer]

They're just talking about balancing the tax burden in a slightly different direction and directly promoting domestic employment with a tax incentive for hiring Canadian workers.

So if I understand you, you are implying that corporations could offset their increased tax burden by hiring employees, making it revenue neutral....then the question is...Do the NDP think that Human resources are an end in themselves...what would these new employees do for the company, other than collect sheques and offset taxes?

[M.Dancer]

I meant that I'm not sure that tax rate would necessarily be a crippling or insurmountable adversity for major corporations.

(I'm guessing the "Chin who walks like a man" is Mulroney but I'm still puzzling out the Admiral one...)

Mr Flag of Convienence, the Minister of Finance, Martin.

[bloodyminded]

So if I understand you, you are implying that corporations could offset their increased tax burden by hiring employees, making it revenue neutral....then the question is...Do the NDP think that Human resources are an end in themselves...what would these new employees do for the company, other than collect sheques and offset taxes?

We'll have to ask currency speculators exactly what this sort of thing demands.

[Shady]

what would these new employees do for the company, other than collect sheques and offset taxes?

Great question. Some people still don't understand that jobs are created when there's actually work that needs to be done.

[Dave_ON]

Great question. Some people still don't understand that jobs are created when there's actually work that needs to be done.

Indeed, and more revenue, leads to more growth and more job creation. Whereas increased taxes simply forces the company to run leaner and "get by" on the current staff they have. Tax incentives to hire people are useless if you don't have sufficient revenue or work to justify those workers.

[M.Dancer]

Indeed, and more revenue, leads to more growth and more job creation. Whereas increased taxes simply forces the company to run leaner and "get by" on the current staff they have. Tax incentives to hire people are useless if you don't have sufficient revenue or work to justify those workers.

Not to mention that a key component to attracting new investment (which is the only way real jobs are created) is the tax rate.

The catastrophe in Japan has caused production in Japan to slow...that slack will be picked up elsewhere where possible. If a company has to decide where they expand, will a higher tax in Canada make their decision to invest here easier?

Yes it would...hello Kentucky?

[Evening Star]

Is that the new measuring stick? Tax rates just under what would be crippling? Either way you keep moving the goal posts. First it was term adverse. Now it's crippling. However, higher costs through higher taxes doesn't make things easier for businesses. It's common sense.

OK, any tax creates some level of immediate adversity for the taxpayer and the optimum business climate would probably be 0% tax and minimal regulation. However, in order to fund government programmes and services - many of which benefit business - and in order to balance our books, we need to charge taxes. (My suspicion is that you and Dancer just want to have less of these services anyway.) And the least painful way to do this is to charge more from those who have more to tax. You're all mainly focusing on the corporate tax cut rollback and mainly neglecting that a significant tax cut is also being proposed for smaller businesses, which should still have the stimulating benefits that you extol. And I have to assume that despite having to pay a little more in taxes, some companies will still make money and need to hire new people. The proposed tax break simply gives an incentive to hire in Canada.

Having said this, I'm not saying for sure that 19.5% is the best corporate tax rate, just that it doesn't sound like a blatantly disastrous idea.

[M.Dancer]

You're all mainly focusing on the corporate tax cut rollback and mainly neglecting that a significant tax cut is also being proposed for smaller businesses, which should still have the stimulating benefits that you extol.

That's like saying to the farmer, we are giving you more heating fuel but taking away gas for your tractor..so you will be okay...

[Evening Star]

Depends which of the two he needed more... If he was freezing in the winter, he might appreciate it...

[Evening Star]

Actually, I've wondered why we don't have as many different tax brackets for corporate taxes as we do for personal income taxes.

[Harry]

Good jobs for Canadians are the key for our society to be successful.

Layton pans Tory defence plan, unveils made-in-Canada alternative

Mr. Layton points out that there has not been a white paper outlining Canadian defence priorities since 1994. He would commit to writing one in his first year in office, one that would refocus the Canadian Forces on defending Canada and Canadians, assisting in times of disaster and supporting peacekeeping efforts around the world.

He would also give Canadas ship-building industry a boost. An NDP government, Mr. Layton said, would ensure that contracts for the replacement of needed joint supply ships go to Canadian shipyards.

For five-years, Stephen Harper has failed to procure the joint support ship ships that our naval forces desperately need, ships that would have kept Canada's shipyards humming, the NDP Leader said.

http://www.theglobeandmail.com/news/politics/ottawa-notebook/layton-pans-tory-defence-plan-unveils-made-in-canada-alternative/article1976679/

Edited April 8, 2011 by Harry

[msj]

I agree that the corporate tax cuts are much ado about nothing.

Yes to lower them from 28% to 18% is a pretty big deal and helpful.

To go from 18% to 15% isn't going to do much. It just isn't.

And for all those people who say it is a big deal then I say how come you support the CPC for the reversal on Income Trusts for businesses?

That essentially was a vehicle to ensure the equivalent of no corporate income tax (since it flowed the income through so tax was paid only by the unit holder).

So, if anything, the CPC have increased business income tax rates by shutting this down and, as such, I don't think anyone who shills for the CPC has any credibility on this issue whatsoever.

If not taxing business creates so many jobs and so much growth then they should have kept the Business Trust model.

Edited April 8, 2011 by msj

[blueblood]

I agree that the corporate tax cuts are much ado about nothing.

Yes to lower them from 28% to 18% is a pretty big deal and helpful.

To go from 18% to 15% isn't going to do much. It just isn't.

And for all those people who say it is a big deal then I say how come you support the CPC for the reversal on Income Trusts for businesses?

That essentially was a vehicle to ensure the equivalent of no corporate income tax (since it flowed the income through so tax was paid only by the unit holder).

So, if anything, the CPC have increased business income tax rates by shutting this down and, as such, I don't think anyone who shills for the CPC has any credibility on this issue whatsoever.

If not taxing business creates so many jobs and so much growth then they should have kept the Business Trust model.

Lots don't support the taxing the trusts, but lots understand why. I think it was a straight up political and govt revenue issue.

The cpc in a minority govt has been spending a lot of money, which sucks but given the situation understandable (ie pass legislation, buy votes). A lot of companies were going to convert to trusts, and the govt/bureaucrats had a fit with the potential loss of revenue to fund all this spending. Had the tories kept the status quo, that likely would have put the opposition into a tizzy, and a potential election could have occurred with this as an issue, which I don't think the tories could have won on (some paying no tax vs. Most paying tax).

The cpc gets a pass because of what we have for alternatives. Martin had resigned as leader, and who knows what leader the libs would have stuck in, and the ndp which no pro business person would touch with a forty ft pole.

Its a price to pay to keep a somewhat business friendly govt in power.