Ontario premier to banks: no more tax cuts, do your bit for the economy

[Newsjock]

Source: Canadian Press

Ontario Premier Dalton McGuinty is rejecting a call from Canada's banks to cut corporate taxes or risk losing high-paying financial-sector jobs to other jurisdictions.

McGuinty fired back on Wednesday, saying it's no surprise that the banks are advancing their cause as being the "ultimate solution" in the face of the global economic crisis.

... He says the banks also have a role to play in stimulating the economy, such as passing on the full interest-rate cut made by the Bank of Canada to ease the credit crunch.

The Canadian Bankers Association — which represents 51 domestic and foreign banks — ... is asking the McGuinty Liberals to reduce its corporate income tax rate to 10 per cent from 14 per cent.



Read more: http://www.cbc.ca/canada/toronto/story/2008/12/17/mcguinty-banks.html

[mrreowwr_kittty]

1. Yeah! We need politicians with that kind of gumption here.

Corporations have been feeding at the gubmint trough for decades now and it's time to STOP it. Countries and regions need to end the stupid and suicidal practice of luring companies with tax breaks and subsidies. It is a race to the bottom.

[Tempest]

2. Goldman Sachs paid 1% in taxes last year

Goldman Sachs Group Inc., which got $10 billion and debt guarantees from the U.S. government in October, expects to pay $14 million in taxes worldwide for 2008 compared with $6 billion in 2007.

The company’s effective income tax rate dropped to 1 percent from 34.1 percent, New York-based Goldman Sachs said today in a statement. The firm reported a $2.3 billion profit for the year after paying $10.9 billion in employee compensation and benefits.

Goldman Sachs, which today reported its first quarterly loss since going public in 1999, lowered its rate with more tax credits as a percentage of earnings and because of “changes in geographic earnings mix,” the company said.

...

U.S. Representative Lloyd Doggett, a Texas Democrat who serves on the tax-writing House Ways and Means Committee, said steps by Goldman Sachs and other banks shifting income to countries with lower taxes is cause for concern.

http://www.bloomberg.com/apps/news?pid=20601087&sid=aznONFlyupOI

[wolfgangmo]

3. Like Canada and other G8 countries ...

We are the worlds largest economies. We should be leveraging that position but instead we are begging. Something is wrong there.

In order to play in our sandbox, they need to play by our rules.

If only we had some politicians in America with some balls that weren't kept in some corporate safe somewhere.

Good for him.

[knightmaar]

4. I can almost respect him

But you have to remember:
a) he pretended in the debates that the outgoing Conservative government's books were balanced when everyone knew they weren't
b) when he came in to government, he created a regressive "Health Care Levy" so he wouldn't break his promise on raising "taxes" on personal income
c) he continues public funding for Catholic schools in the face of the fact that no other religion gets public funding for its schools

Yes, he's doing better lately. But while that Health Care Levy is on my income tax, rather than on a small corporate tax hike or a proper progressive tax, I still see him as somewhat shady.

[Oregone]

5. This makes me proud to be a carpet-bagging, turn-coat Yank in Canada