“Job Creators” MIA

Statscan investment intentions data released today show thatgrowth of  real investment by the private sector is set to slow markedly in 2011 compared to 2010. (up 3.8% vs up 8.0% in 2010.) 

So much for the stimulative effect of corporate tax cuts.

Surprise, surprise investment is concentrated in the resource sector, especially oil, where high prices and profits guarantee high returns to capital, irrespective of the tax rate.

2 comments

  • Oh dear! It must be that discussion of possibly rolling back corporate tax cuts has shattered business confidence. 🙂

  • No, No No. The CIT effect does not kick in until the medium to long-run where it is so swamped by other factors that the best that can be said for CITs five years hence is the counter factual that we would have been worse-off without them.

    Sheesh you guys our poor scientists:),

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