Do Corporate Income Tax Rate Reductions Accelerate Growth?

November 30, 2015
829.39 KB38 pages

This study examines the relationship between the Canadian corporate income tax (CIT) regime and various dimensions of economic growth. The author finds that CIT cuts have not only failed to lead to faster growth, but there is evidence to suggest that—far from spawning higher levels of business investment and GDP growth—corporate income tax reform has indirectly fostered slower growth.