A think-tank has criticized the Conservative government’s corporate tax-cut regime, saying it will only exacerbate existing inequalities in Canada’s economy.
A study yesterday by the Canadian Centre for Policy Alternatives said the big winners from the Conservative cuts will be the oil-producing provinces, and the oil and finance sectors.
The study, by an economist from the Canadian Auto Workers union, said struggling industries and regions will glean little benefit from the new tax measures.
Finance Minister Jim Flaherty said the study is wrong to suggest that reducing taxes will not in some way stimulate the entire Canadian economy.
“Since taking office we have provided relief in every way the government collects taxes: Personal taxes, consumption taxes, excise taxes and business taxes,” he said.