Jan Judson
Dear editor:
Maybe someone can shed some light on a problem I have understanding the NDP’s stance on corporate taxation.
I have been doing books for many years and in my understanding of finance, I feel they are leading the public astray.
My understanding of proper financial papers is to allow a business to make informed decisions. When a corporation looks at its profit and loss statement, they know that they need to have enough profit to allow for replacement of assets.
A loss dictates to them that they must raise their prices to stay in business.
The tax bill of a corporation is an expense, thus an added tax burden means either less profit or a greater loss. In other words, who is really paying the corporate taxes? Well, as I see it, the consumer is.
The more the corporation’s tax bill is, the higher their prices will have to go to stay in business.
It is a well-known fact that the tax burden on corporations is driving businesses away. So when the NDP is shaming the government for reducing the tax burden of corporations, all the government is doing is trying to keep prices down and to keep businesses in Canada.
Most people do not understand this, so the NDP can get away with making people believe that corporations are getting a break when, actually, the consumer is the one who is paying.
Sincerely,
Jan Judson
Emo, Ont.
