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After a generation of comparatively high corporate income tax (CIT) rates, in the late 1980s Canadian governments at the federal and provincial levels began a series of corporate income tax reforms. According to many mainstream (‘neoclassical’) economists, reducing CIT rates was a wise public policy. A reduced CIT rate means a reduction in the cost of capital, thus inducing a greater supply of capital. And because investment is a key driver of growth, reducing CIT rates leaves firms more (after-tax) earnings to plough into growth-expanding industrial projects. Did the halving of the Canadian CIT rate spur higher levels of investment and more rapid growth?

Taken from: http://www.progressive-economics.ca/2015/09/11/canadas-failed-experiment-with-corporate-income-tax-cuts/

Corporations
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Kinder Morgan
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