Is There Any Efficacy to Lowering Corporate Taxes?

The Globe and Mail printed a column by an economist whom I think is particularly out to lunch stating that people were surprised that the reduced corporate tax rates were not resulting in additional capital expenditures and therefore growing economic activity. Hopefully, the reader has now opened up The Limits of Debt and Black Hole Economics and realizes that cutting corporate taxes is not only an approach which cannot produce more activity but worse, makes government balance sheets worse off, adding to the already over-burdened economy.

All that corporations are doing, of course, are buying back stock and not investing – as the Black Hole mathematics clearly underlines must occur. For the American One Percent Party (a.k.a. the Republicans), not only is their platform of cutting corporate taxes doomed to fail, but worse, it is indeed only making things worse for the vast majority of the American population.

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About rosshealy

C. Ross Healy, MBA, CFA Chairman, Strategic Analysis Corporation Ross Healy began his investment industry career in 1965 as a securities analyst for Midland Osler Securities. He was a co-founder of Sceptre Investment Council in 1970, a leading Canadian money manager. In 1984, he became Director of Research at Merrill Lynch Canada, and during this time provided support for the late Dr. Verne Atrill, the theorist who decoded the mathematics underlying the Theory of Accounting Dynamics upon which the Strategic Analysis Corporation (SAC) methodology is based. After supporting and collaborating with Dr. Atrill for many years, he joined SAC as Chairman and CEO in 1989 following the death of Dr. Atrill. Ross Healy is a past president of the Toronto CFA Society, and served on the board of the Financial Analysts Federation (now the CFA Institute) as Chairman of the Financial Analysts Journal committee, the academic arm of the CFA Society. He has served on the Financial Disclosure Advisory Board of the Ontario Securities Commission, and was a member of the Executive Committee of Trinity College, University of Toronto, chairing the Investment Committee. He currently serves as the Chairman of the Board of Trustees of Eglinton St. George’s United Church of Toronto. He contributes investment analysis to print, radio, and television media, and has been appearing regularly on Business News Network (BNN) for the past 15 years, and the Canadian Broadcasting Corporation (CBC). There is an award-winning book written about his analysis leading up to the collapse of Nortel Networks (The Bubble and The Bear, How Nortel Burst the Canadian Dream, by Douglas Hunter, Doubleday Canada, 2002. He was the “Bear” in the book.). Email Address: rhealy@strategicanalysis.ca Company Website: www.strategicanalysis.ca Telephone (work): 416-498-3604 x 133 Cell: 416-258-8342
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