VANCOUVER, B.C. — A new survey has been released by the independent Fraser Institute regarding the impact of corporate tax increases.
The study finds that while ‘wealthy executives’ may be the target of corporate income tax hikes, they are ultimately paid by ‘ordinary Canadians:’ shareholders — through lower investment returns, consumers — through higher prices, and workers — through lower wages.
Charles Lammam, Institute’s Director of Fiscal Studies, says this study has debunked the long-held misconception that an increase in corporate taxes has no impact on workers pocketbooks.
The study also examined the effect of an increase in the employer portion of payroll taxes — contributions made on behalf of employees to entitlement programs.
In conclusion, Mr. Lammam concedes for much of the last decade and a half, all levels of government across the country have recognized the advantages of lowering corporate taxes.
But, in recent years, recessionary-driven budget pressures have led them in an opposite and misguided direction.