Further to Jim's excellent critique of the Ontario Conservative platform's graphs, I am similarly struck by the Liberal platform's lone graph.
"Cutting Ontario's Taxes on New Business Investment in Half" (page 25) purports to show that corporate tax cuts are required to get the province's "Marginal Effective Tax Rate" below the U.S. and OECD averages.
It compares projections of those averages for 2012 with Ontario rates for four other years. It cites no sources for any of these figures.
The Liberals have often invoked Jack Mintz in support of corporate tax cuts. However, his figures confirm that Ontario has been below the U.S. Marginal Effective Tax Rate of 35 per cent all along (table 2, page 7). The Liberal graph incorrectly displays a U.S. average of 31 per cent to imply that Ontario needed corporate tax breaks to compete.
The comparison to a raw average of OECD countries is also disingenuous. This average is dragged down by ultra-low taxes in very small OECD members like Ireland, Chile, Iceland, the Czech and Slovak Republics, Hungary, Slovenia and Estonia. All of those economies combined are smaller than the Canadian economy.
This article was first posted on The Progressive Economics Forum.
Thank you for reading this story…
More people are reading rabble.ca than ever and unlike many news organizations, we have never put up a paywall – at rabble we’ve always believed in making our reporting and analysis free to all, while striving to make it sustainable as well. Media isn’t free to produce. rabble’s total budget is likely less than what big corporate media spend on photocopying (we kid you not!) and we do not have any major foundation, sponsor or angel investor. Our main supporters are people and organizations -- like you. This is why we need your help. You are what keep us sustainable.
rabble.ca has staked its existence on you. We live or die on community support -- your support! We get hundreds of thousands of visitors and we believe in them. We believe in you. We believe people will put in what they can for the greater good. We call that sustainable.
So what is the easy answer for us? Depend on a community of visitors who care passionately about media that amplifies the voices of people struggling for change and justice. It really is that simple. When the people who visit rabble care enough to contribute a bit then it works for everyone.
And so we’re asking you if you could make a donation, right now, to help us carry forward on our mission. Make a donation today.