What did corporate tax cuts deliver? : Qu'est-ce que les réductions de l'impôt des sociétés ont apporté? : rapport documentaire pour la Journée de l'affranchissement de l'impôt des sociétés 2013

According to Statistics Canada, the cash reserves of non-financial corporations increased by $72 billion in 2011, from $503 billion in cash reserves by the end of 2010 to $575 billion by the end of 2011. [...] In line with cuts to the statutory federal and provincial tax rate, the effective tax rate of Canada’s largest non-financial companies (that is, taxes actually paid to the federal and provincial governments as a share of pre-tax profits) has fallen, from 40% in 2001, to 32% in 2011. [...] A Background Report for Corporate Tax Freedom Day 2013 1. Corporate Tax Freedom Day In 2011, corporate income taxes — paid to the federal and provincial governments combined — amounted to 8.3% of provincial and federal income tax revenues of government.2 It can be calculated that corporations in 2011 had paid their share of all taxes by the 30th of January, which we therefore call “Corporate Tax F [...] A Background Report for Corporate Tax Freedom Day 2013 The combined federal/provincial statutory rate has Table 1: Federal Corporate fallen from 40.5% in 2001, to 34% in 2007, to 27.8% Tax Rate on General Income in 2011,4 and is expected to fall to just 25% over the 1960 41.0 1970 40.0 next few years. [...] The effective rate is generally lower than the statutory rate because not all forms of corporate income are fully included in taxable income, and because corporations can deduct some costs from their taxable income on very generous terms and conditions.5 3. Corporate Tax Cuts, Corporate Profits, and Cash Proponents of ever lower corporate taxes argued that the money corporations saved from lower t