Home Forums FineTunedMac Community Lounge Mitt Romney Economics

I find it interesting that, to support his idea that tax breaks for business will generate jobs, Mitt Romney continually points to the fact that Canada's corporate tax rate is only 15%.

He's right, our tax rate is 15% having dropped from 28% in 2000. The idea was that tax breaks would create employment for Canadians- much as the Governor predicts will happen for Americans. So, how has that worked out in Canada?

Our corporations are now sitting on cash reserves of $477 billion, an increase of $320 billion in the last decade. Shareholders and corporate executives have done very well but the unemployed....not so much.

The Canadian unemployment rate is currently 7.4%, slightly less than the U.S. at 7.8%.

And that 7.4% rate is an increase from 6.8% in January 2000, before we started fattening corporate bank accounts and executive wallets.