The Party Canadian Society and Politics - Liberals Give Billions To Well-Connected Corporations

Mon 14 Nov 2005

“Real social investment is needed to boost productivity”:
Wasylycia-Leis

OTTAWA – In the Economic and Fiscal Update, released today by Finance Minister Ralph Goodale, the Liberals announced 10 billion dollars in corporate tax cuts claiming this will boost Canada’s productivity and competitiveness.

“Liberals are pushing ahead with big corporate tax cuts for their well connected friends,” said NDP Finance Critic Judy Wasylycia-Leis (Winnipeg North). “If productivity and competitiveness really mattered to these Liberals we’d be looking at meaningful social investment. Investment in areas like education, infrastructure and the quality of life in our cities and communities like those included in the NDP budget amendment. These are the real engines of prosperity and productivity. Not giving away billions of dollars to big banks and oil companies.”

Despite Liberal efforts to claim otherwise, the Conference Board of Canada has said that corporate tax cuts do not have a strong or direct effect on productivity.

And the Canadian Centre for Policy Alternatives has questioned why the Liberals would stick to such a weak economic policy, when it’s been shown that tax cuts are no solution.

“In 2000, Paul Martin introduced the largest tax cuts in Canadian history. Following those tax cuts Canada’s productivity fell and it remains stagnant, well below pre-tax cut levels,” said Wasylycia-Leis. “This is simply bad economic policy. Canada’s corporate tax rates are already lower than those found in the U.S., but we consistently drag behind the U.S. in productivity.”

“They’re giving away billions of dollars to their corporate cronies, which they have never campaigned on, and don’t have a mandate from the people of Canada to do,” Wasylycia-Leis said. “We already know what happens when Liberals put their well connected friends ahead of people.”

“People end up paying for these tax cuts through the hospitals not being built, universities not being funded, and infrastructure crumbling,” Wasylycia-Leis said. “This is the Liberal “culture of entitlement” that Justice Gomery referred to. These Liberals can’t distinguish between what’s in the interest of the Liberal Party, and the interest of the nation.”

“Canadians will not tolerate these Liberals trying to buy their votes with taxpayer money. This is simply an exercise in Liberal electioneering.”