Canadian Labour Congress

Canadian Labour Congress

September 29, 2005 10:29 ET

Corporate tax cuts don't work.

Good jobs and investment in people do. Attention: Assignment Editor, Business/Financial Editor, City Editor, News Editor, Government/Political Affairs Editor OTTAWA--(CCNMatthews - Sept. 29, 2005) - The gloves will be off when the Canadian Labour Congress takes its proposals for the next federal budget to the House of Commons Finance Committee today.

Canada's largest labour organization will tell the government not to listen to the greedy voices of corporate and employer lobby groups and keep the focus where it belongs - creating good jobs in safe workplaces, investing in people, and investing in public infrastructure.

"We believe the basis for sustainable high productivity is not working longer and harder, but high levels of investment in public infrastructure, education and training, modern machinery and equipment, new plants and buildings, research and development, and innovation," says Hassan Yussuff, Canadian Labour Congress Secretary-Treasurer.

Yussuff says the usual business voices have nothing to offer. All they do is repeat their annual demand for lower corporate taxes. He says telling government "you take care of us and we'll take care of the economy" is no longer good enough because the facts are telling people another story.

As tax rates fell and corporate profits soared, business investment in buildings, machinery and equipment stagnated and actually fell as a share of GDP between 1999 and 2004. Instead of using tax savings to enhance productivity growth in Canada, corporations chose to boost returns to shareholders and increase their direct investment outside of Canada.

The Canadian Labour Congress says the key to enhancing Canada's productivity lies in enhancing the standard of living of its people. The last federal budget was a good start. The next one should boldly continue down the same path.

"When working people do well, business does well and we have a better country," says Yussuff, whose presentation with economists Andrew Jackson and Teresa Healy begins at 11:00 a.m. in Room 269 West Block. The proceedings will be televised on parliamentary c.c.t.v. The brief will be available at http://canadianlabour.ca.

The Canadian Labour Congress, the national voice of the labour movement, represents 3 million Canadian workers. The CLC brings together Canada's national and international unions along with the provincial and territorial federations of labour and 137 district labour councils. Web site: www.canadianlabour.ca IN: ECONOMY, FINANCE, LABOUR, POLITICS, SOCIAL

Contact Information

  • Jeff Atkinson, Canadian Labour Congress
    Primary Phone: 613-526-7425
    Secondary Phone: 613-863-1413
    E-mail: communications@clc-ctc.ca