In July, 2011, the BC Federation of Labour released the first in a series of reports examining corporations in B.C. The “Failed Policies” series will examine corporate profits, corporate taxes paid, corporate investment and job creation.
The first report shows that while corporate profits have increased significantly over the last decade, taxes collected from these corporations have steadily declined. At no time in the last 30 years have corporations contributed less in tax revenue – as a proportion of their earnings – to British Columbia, even as corporate profits are at historic high levels in our province.
In 2011, B.C. corporate profits are expected to hit a new record high of $23.7 billion and are predicted to climb to $31.3 billion by 2015. During the last decade, B.C.’s corporate income tax rate was cut from 16.5% to today’s rate of 10%. These corporate tax cuts led to a loss of provincial revenues of at least $7.7 billion over the last 10 years and will lead to the loss of an additional $8.8 billion in revenues between now and 2015.
You can read the complete report at http://www.bcfed.ca/files/0500-11rep-es-failed_policies.pdf
