Canada’s “brilliant” Reputation on risk in terms of job creation
The Liberal party has proposed to raise the corporate tax to what it was the previous year.
However this has been strongly opposed by Canada’s Finance Minister Jim Flaherty who says that raising the corporate tax will surely smear the country’s “brilliant” reputation to other nations who look up to Canada’s efforts in reducing tax burden as a means to creating jobs and boosting the country’s economy.
The Liberal’s view
The Liberal party has stated their plan of raising the corporate tax to 18% which was last year’s rate, which they intend to be used in creating a budget allocation to the country’s education and homecare for the elderly.
Flaherty’s Plan
In the hopes of maintaining Canada’s brilliant reputation at the world stage of creating jobs and maintaining a solid economic growth, Flaherty has vowed that the plan to decrease the corporate tax rate to 15% from 16.5% that kicked in this January 1 and from 18% in the previous year will be pushed through. He also opened up the compromise to the opposition that would have to take place in the budget allocation for retraining workers that have been laid off by companies undergoing deep reconstruction.
During a broadcast interview in Davos, Mr. Flaherty said that “The big issue is how do we go forward? Do we go forward with higher taxes on Canadians? Is this the way to create jobs? Or do we continue with our low tax plan in making sure to create jobs and maintain economic growth.”
Flaherty will be in Vaughan, Ont., this Monday to update the people on the $48 billion stimulus plan. According to sources, more than a hundred thousand businesses have benefited in tax reductions over the past years and Flaherty is expected to defend his plans on further reducing the business tax rates over the next few years.
However, original plans of cutting the entire funding for internal infrastructure projects was put on hold after giving due concern to Europe’s economic standing.
What’s coming in the future
Although the rising challenge to create jobs especially after the huge recession and recover all the lost livelihood may add pressure to the Conservative party’s plans, they are not deterred since these allegations have awakened more speculations on the accuracy of the interpretation of the statistics than on how their plans will be effective for the country’s economy. Some say that these statistics released and interpreted by Statistics Canada are more of a reflection of the smaller work force than of Canada’s weakening economy.
