Tim Hortons | Harper | Economist | United Steelworkers

Sep 25, 2009 04:30 AM

Harper’s gaffe at Tim Hortons | Re: doughnuts over diplomacy

Sept. 24

In this instance, a picture really is worth a thousand words. What better example can there be than Stephen Harper drinking Tim Hortons coffee at a function in Oakville, while the rest of the world leaders take the stage at the United Nations, to show us how unimportant it is for him to speak for Canada?

Much as I would hate to go through another election, perhaps it is time to let Harper go back to being a hockey dad full-time and give someone else the job of giving Canada a voice on the world stage.

Andrea Valentini, Toronto

By reorganizing itself as a Canadian corporation for tax purposes, Tim Hortons will no longer pay American tax on its global profits. But it will pay no additional Canadian tax on its Canadian profits. There is no indication of Tim Hortons relocating any facilities or jobs to Canada.

This corporate reclassification appears to be the Prime Minister’s best or only example of what deep corporate tax cuts have achieved. If so, it suggests that these cuts provide essentially no public benefit.

Meanwhile, Finance Canada estimates that federal corporate tax reductions enacted since 2006 will cost $14.9 billion annually in lost revenue when fully implemented. Slashing provincial corporate taxes will cost billions more. The prospect of ongoing budget deficits should prompt policy-makers to compare the imagined benefits and real costs of continuing corporate tax cuts.

Erin Weir, Economist

United Steelworkers, Toronto

http://www.thestar.com/comment/article/700696

~ by Cory Morningstar on September 25, 2009.

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