Not long ago Mark Carney, the former head of the Bank of Canada, lamented that Canada's corporations, after receiving substantial tax reductions ostensibly to invest in job creating activities, are simply hoarding the money.
Now we are told by Jim Flaherty, Canada's Finance Minister, that these same corporations cannot afford to pay additional contributions to the Canada Pension Plan (CPP).
We're told that Canadians are not saving enough to fund their own retirements. We're also told that Canadians are carrying excessive personal debt levels (not including mortgages).
If the government took the tax reductions back from corporations they would have the funds to increase contributions to CPP.
If Canadians cut back spending and started saving for retirement corporations would have the investment capital they need for job creation.
Roy Olsen
Prince George
