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Liberals say Hudak's job numbers are way off

By: Sudbury Northern Life Staff

 | May 27, 2014 - 11:51 AM |
The Liberals have questioned Progressive Conservative leader Tim Hudak's math in a recent press release.

Hudak has said his proposed corporate tax cuts would create 119,808 jobs over eight years, but the Liberals have said the number should be closer to 14,976.

To arrive at 119,808 new jobs, said the Liberals, the Conservatives looked at a Conference Board report that said a one per cent reduction in the corporate tax rate would result in 42,788 person-years of employment over a ten year period.

They then divided that number by 10 to arrive at 4,278.8 person years of employment per year.

Because the Conservatives have proposed a 3.5 per cent cut to the corporate tax rate, they then multiplied that number by 3.5, which gave them a total of 14,976.

Finally, they multiplied that total by eight, for the eight years of their job growth plan, which gave them 119,808 new jobs.

But the Liberals said in their press release that providing a cumulative amount of person-years of employment, as the Conference Board did, was not jobs.

“A person-year of employment is one job for one person for one year,” the Liberal release said. “So the PC number of 119,808 means that over the life of the plan, 119,808 people will each be employed for one year. Or 14,976 people will be employed for all 8 years.”
 

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