Opinion

Letter to the Editor, Toronto Star:

Re: House of Harper quickly crumbling, Feb. 22

Suddenly a lot of people from banks and corporations are in favour of the Liberals running infrastructure-investment-driven deficits from $30 billion to as high as $50 billion. In other words, they want government to do the really heavy lifting in stimulating the economy along with assuming, on behalf of the Canadian taxpayer, all of the financial as well as political risk.

This is the same group that for years has said governments really don’t create jobs, but rather are responsible for creating the right “environment and supports for investment,” by which they usually mean taxes.

Over the last decade, Canada’s corporations were given some of the deepest tax discounts in the world, and yet they have utterly failed to do anything other than mostly pocket the rewards.

We need to remember that those same corporations also failed to reinvest their tax windfalls in new Canadian jobs (ex-Bank of Canada governor Mark Carney’s “dead money”). Recent data from Statistics Canada also suggests many of the corporations were in fact investing their tax windfalls outside of the country.

Canada’s books for 2013–14 show personal taxes accounted for 48 per cent of total federal revenues, while corporate taxes accounted for a mere 13.5 per cent of that total.

So yes, Canada should indeed invest heavily in infrastructure investment in the coming years, but the question remains: Why can’t those corporations assume a larger financial input and responsibility in the country’s job and economic future?

Edward Carson, Toronto

Comment: Michael McNeil Edward Carson is quite correct. Here are the numbers from the (audited) National Accounts of Canada (Table 3, http://www.fin.gc.ca/afr-rfa/2014/report-rapport-eng.asp):