economics

Again, the common view of economists is that cutting income taxes has a greater positive effect on economic activity than cutting consumption taxes, because it reduces the adverse double tax burden, and improves incentives and competitiveness. (The federal government recently reduced its GST rate from 7 to 5 percent in preference to reducing personal or corporate taxes. The stated reason for this choice was that the public was more likely to notice a cut in sales tax rates than in personal tax rates, which are contained within a complex income tax system.)
For similar reasons, a cut in corporate income taxes will tend to have a greater positive effect on economic activity than a cut in personal income taxes, because corporations are the main direct spenders on new investment. We consider efficiency at greater length in chapter 2.