Business Tax Cuts Ineffective - Question Period
CLAUDIA CHENDER « » : My question is for the Premier. A 2011 report by economist Jim Stanford reviewed the data on business profits, taxes, and investment in Canada from 1961 through 2010. The analysis showed over 10 years ago that business tax cuts are economically ineffective, and I'll table that. Every one dollar of tax cut generates 10 cents of private investment.
Corporate tax cuts are a bad deal for the province when what Nova Scotia really needs is a green jobs plan to transform our economy. Mr. Speaker, will the Premier explain why he chose to pass up this $70-million opportunity to invest in a new green economy and chose instead to throw more money into the status quo?
THE PREMIER « » : Mr. Speaker, the honourable member must have missed the part of the budget where 70 per cent of the budget in the Department of Energy and Mines is going to green jobs. (Applause)
What the honourable member is missing is that we had the highest corporate tax rate in the country. Our neighbouring province was below. What we've done is reduce it 2 per cent, and not because we're trying to race to have the lowest corporate tax cut in the country. We're trying to make sure that we stay competitive in a region that, quite frankly, we're leading today.
We want to keep that competitive edge to ensure that the men and women who are driving job creation continue to do so. More young people are attached to our workforce today than have been in a very long time. More people are choosing our province to come and live and work. We want those job creators to invest that money back into our system so that we can continue to grow our population and continue to collect taxes to continue to pay for the services that the honourable member and her caucus continually talk about.
CLAUDIA CHENDER « » : Mr. Speaker, the document I just tabled showed that there is scant to no evidence that corporate tax cuts result in reinvestment. What we saw today is what happens when big companies and old-school governments are in charge.
Our caucus has described many times the incredible economic and environmental opportunities that could exist if the government chose to show real leadership and invested in economic transformation. We know that there have been other failed investments in transformation. According to a recent report prepared for the Ecology Action Centre, Nova Scotia has the opportunity to create over 15,000 green jobs per year in the province if we made serious investments in the green economy.
Mr. Speaker, can the Premier table any evidence of the number of jobs that will be created, and the amount of money reinvested, as a result of his $70-million corporate tax cut?
THE PREMIER « » : As I'm sure the honourable member knows, there's an opportunity for Estimates. The Minister of Energy and Mines would be more than happy to describe the green jobs that are happening across the province.
I think it's unfortunate that the honourable member would stand in her place and suggest that the investments in the Boys and Girls Club is not a good investment, that the investment in Phoenix is not a good investment, that the support that we're providing Adsum House today is not a good investment. She's suggesting that $54 million in community services to help the most vulnerable people in our province is not a good investment.
The reality is that this budget reflects the fact that our economy is doing well. We need those job creators to continue to create jobs with economic activity so that more young people will choose to live and work in our province and so more people will choose to come and live and work here. That's a balanced approach to delivering services to the people of this province.