CKA Forums
Login 
canadian forums
bottom
 
 
Canadian Forums

Author Topic Options
Offline
Forum Super Elite
Forum Super Elite
 Vancouver Canucks


GROUP_AVATAR
User avatar
Profile
Posts: 2930
PostPosted: Sat Nov 03, 2007 9:34 am
 


Because higher corporate taxes lowers the rate of wages paid by more than the corporate tax paid.

Quote:
We examine the extent to which taxes on corporate income are shifted onto the workforce in the form of lower wages. We use data on 23,000 companies located in 10 countries over the period 1993-2003. We identify two channels by which taxes can affect wages: indirectly through a lower capital stock, and more directly through wage bargaining for net of tax, location-specific rents. We find that a significant part of the effective incidence of the tax falls on wages. Our central estimate is that 54% of any additional tax is passed on in lower wages, even in the short run; other estimates are larger than this. In the longer run, a $1 rise in the tax liability results in a fall in total employee compensation in excess of $1.


http://users.ox.ac.uk/~mast1732/RePEc/pdf/WP0707.pdf
http://worthwhile.typepad.com/worthwhil ... ssive.html


Offline
CKA Uber
CKA Uber
Profile
Posts: 11052
PostPosted: Sat Nov 03, 2007 9:38 am
 


I dont work for a corporate :roll: so i dont gives a flying :wink: tax them to the hilt and build some new roads that all those corporate trucks ruin. :D


Offline
Forum Elite
Forum Elite


GROUP_AVATAR
User avatar
Profile
Posts: 1105
PostPosted: Sat Nov 03, 2007 10:18 am
 


These surveys usually don't take into account services the Governement gives in some countries(Health Care as an example) and in other that it falls upon the worker to demand it from their employer (Health Insurance, Day Care etc..).

But, at that, I do agree that lower corporate taxes are good in many ways. Higher profits mean more investement, and that means more jobs. More jobs, mean a higher demand for labor. A higher demand for labor means higher wages in the long run. All good.


Offline
Forum Addict
Forum Addict
User avatar
Profile
Posts: 939
PostPosted: Sat Nov 03, 2007 12:27 pm
 


Toro wrote:
Because higher corporate taxes lowers the rate of wages paid by more than the corporate tax paid.


It's pointless. People refuse to be convinced because they can see GST day to day.

Lowering the GST makes dummies swoon; Harper knows this and it's why he's doing it.


Offline
CKA Uber
CKA Uber
 Toronto Maple Leafs


GROUP_AVATAR

GROUP_AVATAR
Profile
Posts: 20740
PostPosted: Sat Nov 03, 2007 12:38 pm
 


neopundit wrote:
Toro wrote:
Because higher corporate taxes lowers the rate of wages paid by more than the corporate tax paid.


It's pointless. People refuse to be convinced because they can see GST day to day.

Lowering the GST makes dummies swoon; Harper knows this and it's why he's doing it.


Its amazing how many people seem to fail at basic math.

A 1% tax cut on your gross income or a 1% tax cut on the money from that gross income that you spend on GST applicable goods.

Rent isn't included and neither is most of the food you buy in a grocery store.

The math is simple.


Offline
Forum Super Elite
Forum Super Elite
 Vancouver Canucks


GROUP_AVATAR
User avatar
Profile
Posts: 2930
PostPosted: Sat Nov 03, 2007 1:00 pm
 


DerbyX wrote:
Its amazing how many people seem to fail at basic math.

A 1% tax cut on your gross income or a 1% tax cut on the money from that gross income that you spend on GST applicable goods.

Rent isn't included and neither is most of the food you buy in a grocery store.

The math is simple.


Yes, and the Department of Finance knows that, which is why the trade-off would be something like a 0.5% cut in income taxes or a 1% cut in GST, not 1% for either.


Offline
CKA Elite
CKA Elite
 Toronto Maple Leafs
User avatar
Profile
Posts: 3234
PostPosted: Sat Nov 03, 2007 1:03 pm
 


Derby,

I agree! Leave the GST alone and give me income tax cuts. A 1% reduction in the GST is meaningless. I'd have to spend$30,000 on GSTable items before I saw $300 in savings. Raising the personal exemption gives almost everybody that same $300 savings.


Offline
CKA Elite
CKA Elite
User avatar
Profile
Posts: 3367
PostPosted: Sat Nov 03, 2007 1:04 pm
 


DerbyX wrote:

The math is simple.


Oh yea !!!

Here is DerbyX answering a math question. :lol: :lol: :lol:

Image


Offline
CKA Uber
CKA Uber
 Toronto Maple Leafs


GROUP_AVATAR

GROUP_AVATAR
Profile
Posts: 20740
PostPosted: Sat Nov 03, 2007 1:06 pm
 


Toro wrote:
DerbyX wrote:
Its amazing how many people seem to fail at basic math.

A 1% tax cut on your gross income or a 1% tax cut on the money from that gross income that you spend on GST applicable goods.

Rent isn't included and neither is most of the food you buy in a grocery store.

The math is simple.


Yes, and the Department of Finance knows that, which is why the trade-off would be something like a 0.5% cut in income taxes or a 1% cut in GST, not 1% for either.


Like last time when they raised personal income tax by 0.5% to cover the 1%?

Regardless, the only way to take advantage of the GST cut is to spend money.

An income tax cut saves you money regardless of whether you spend your money or squirrel it away.

In addition since they are collecting less in GST income they will cut the GST rebate. Since the bottom earners are the only people getting that rebate they will lose that income which partially mitigates what they will gain from a GST cut.


Offline
CKA Super Elite
CKA Super Elite
 Edmonton Oilers
User avatar
Profile
Posts: 8562
PostPosted: Sat Nov 03, 2007 1:57 pm
 


DerbyX wrote:
Like last time when they raised personal income tax by 0.5% to cover the 1%?

Regardless, the only way to take advantage of the GST cut is to spend money.

An income tax cut saves you money regardless of whether you spend your money or squirrel it away.

In addition since they are collecting less in GST income they will cut the GST rebate. Since the bottom earners are the only people getting that rebate they will lose that income which partially mitigates what they will gain from a GST cut.


Here's my take: Axe the GST altogether, and make it up by raising income tax. Here are my reasons:

Income tax is progressive, the more you make, the greater the marginal rate you pay. GST is flat, bayond a pseudo-personal exemption in the form of the "rebate", everyone pays the same rate.

It would be tourist-friendly. We're being hurt by the high dollar, this would get back a little bit (admittedly at this point about a month of dollar growth, but the value will be corrected at some point).

It would eliminate part of, or at least streamline the tax bureaucracy.

The "rebates" are a joke anyways because they aren't rebates. They're an advance payment on what the government estimates you'll pay in the coming year. I used to get the rebates, but then I got a better job and they clawed a lot of it back. Then I got married and they clawed more back.

We could just once and for all put to rest the back and forth sniping over the stupid thing.

Just my two cents.


Offline
CKA Uber
CKA Uber
Profile
Posts: 11052
PostPosted: Sat Nov 03, 2007 2:37 pm
 


hurley_108 wrote:
DerbyX wrote:
Like last time when they raised personal income tax by 0.5% to cover the 1%?

Regardless, the only way to take advantage of the GST cut is to spend money.

An income tax cut saves you money regardless of whether you spend your money or squirrel it away.

In addition since they are collecting less in GST income they will cut the GST rebate. Since the bottom earners are the only people getting that rebate they will lose that income which partially mitigates what they will gain from a GST cut.


Here's my take: Axe the GST altogether, and make it up by raising income tax. Here are my reasons:

Income tax is progressive, the more you make, the greater the marginal rate you pay. GST is flat, bayond a pseudo-personal exemption in the form of the "rebate", everyone pays the same rate.

It would be tourist-friendly. We're being hurt by the high dollar, this would get back a little bit (admittedly at this point about a month of dollar growth, but the value will be corrected at some point).

It would eliminate part of, or at least streamline the tax bureaucracy.

The "rebates" are a joke anyways because they aren't rebates. They're an advance payment on what the government estimates you'll pay in the coming year. I used to get the rebates, but then I got a better job and they clawed a lot of it back. Then I got married and they clawed more back.

We could just once and for all put to rest the back and forth sniping over the stupid thing.

Just my two cents.
Agreed.....I have never had a gst rebate.


Offline
CKA Uber
CKA Uber
User avatar
Profile
Posts: 51388
PostPosted: Sat Nov 03, 2007 2:42 pm
 


Even if it is of little or no use, at least the politicians here are smart enough to cut taxes.

Holland has been doing wel, and they raised BTW (tax on everything you buy, except for daily necessities like bottled water, and really not much more, wich is 6%) from 19 to 20% as of Januari 1st.

The reason: now we have it good, we need to save for worse days to come. When we had worse days, they raised BTW from 17.5 % to the 19 % it is now, adding the reason: we need to pay a bit more, because the economy is not doing so well... :?


Offline
CKA Elite
CKA Elite
User avatar
Profile
Posts: 4502
PostPosted: Sun Nov 04, 2007 5:31 pm
 


While I agree that with a strong Canadian Dollar a cut in corporate taxes is needed. It can only help to bring in bringing more companies and corporations to our country. It can also keep the existing ones profitable.

Where I have a problem is a cut to the taxes of the oil companies and, especially the banking institutions. Both of these get more than enough from the pockets of Canadians that they do not need a tax cut at this time. Banking institutions in particular are showing record profits year upon year and there is nothing being done to help average Canadians from getting gouged by the fees charged by them.


Offline
CKA Super Elite
CKA Super Elite
 Edmonton Oilers
User avatar
Profile
Posts: 8562
PostPosted: Mon Nov 05, 2007 8:08 am
 


BluesBud wrote:
While I agree that with a strong Canadian Dollar a cut in corporate taxes is needed. It can only help to bring in bringing more companies and corporations to our country. It can also keep the existing ones profitable.

Where I have a problem is a cut to the taxes of the oil companies and, especially the banking institutions. Both of these get more than enough from the pockets of Canadians that they do not need a tax cut at this time. Banking institutions in particular are showing record profits year upon year and there is nothing being done to help average Canadians from getting gouged by the fees charged by them.


That's a good point, and I've heard several times that large companies, 500+ employees, are not net creators of jobs. Only small companies are. So I agree with small business tax cuts, but definitely not big business cuts.


Offline
CKA Moderator
CKA Moderator
User avatar
Profile
Posts: 33137
PostPosted: Mon Nov 05, 2007 10:33 am
 


Toro wrote:
Because higher corporate taxes lowers the rate of wages paid by more than the corporate tax paid.

Quote:
We examine the extent to which taxes on corporate income are shifted onto the workforce in the form of lower wages. We use data on 23,000 companies located in 10 countries over the period 1993-2003. We identify two channels by which taxes can affect wages: indirectly through a lower capital stock, and more directly through wage bargaining for net of tax, location-specific rents. We find that a significant part of the effective incidence of the tax falls on wages. Our central estimate is that 54% of any additional tax is passed on in lower wages, even in the short run; other estimates are larger than this. In the longer run, a $1 rise in the tax liability <b>results in a fall in total employee compensation</b> in excess of $1.


http://users.ox.ac.uk/~mast1732/RePEc/pdf/WP0707.pdf
http://worthwhile.typepad.com/worthwhil ... ssive.html


I don't get the quote. Lower taxes, then corporations pay less benefits - yet costs for employees still rise? (inflation)

Where's the benefit?


Post new topic  Reply to topic  [ 27 posts ]  1  2  Next



Who is online

Users browsing this forum: No registered users and 1 guest




 
     
All logos and trademarks in this site are property of their respective owner.
The comments are property of their posters, all the rest © Canadaka.net. Powered by © phpBB.