Very interesting study from the University of Calgary

 

Very interesting study from the University of Calgary

Very interesting study from the University of Calgary, concluding that higher corporate taxes lower *wages* by more than the additional taxes collected. "...we calculate that for every $1 in extra tax revenue generated by an increase in the provincial CIT rate, the associated long-run decrease in aggregate wages ranges from $1.52 for Alberta to $3.85 for Prince Edward Island. Applying our estimates to the recent 2 percentage point increase in the CIT rate in Alberta we calculate that labour earnings for an average two-earner household will decline by the equivalent of approximately $830 per year, which amounts to a $1.12 billion reduction in aggregate labour earnings for the province."

Leave a Reply

Your email address will not be published. Required fields are marked *