Posted on 02/24/2011 12:21:35 PM PST by SeekAndFind
By 2013, Canada's effective tax rate on capital will be 18.4%, less than one half of our 39% in 2005. We will have the most tax-competitive regime in the G7, which is far better than six years ago, when we had the least competitive regime.
These corporate tax reductions have boosted investment. One important study showed that a 10% reduction in the tax-inclusive cost of capital led to a 7% increase in capital investment.
Without doubt, the final stage of corporate tax reductions in Canada is a win-win for both the private and public sectors. There is no trade-off between the deficit and the remaining corporate tax reductions. This is the lesson of the past 11 years.
This lesson, I hope, will be understood by the United States, whose fiscal problem is in stark contrast to Canada's. Total U.S. government debt will soon top 100% of GDP, with substantial funds owing to rest of the world, a situation that Canada had found itself in 1994, when it could have lost its ability to raise debt in international markets. U.S. governments spend as much as Canadian governments today -- 40% of GDP -- but run massive deficits, more than 10% of GDP.
Unlike Canada, U.S. business tax reform is stagnant. The United States has the highest corporate tax rate in the world, now that Japan is looking to reduce its corporate tax rate by five points to 36% on April 1. In fact, many countries continue to reduce corporate income tax rates despite their deficits, such as the U.K. planning a four-point cut, from 28% to 24%, by 2014.
The U.S. debate is focused on reducing corporate rates and eliminating special preferences on a revenue-neutral basis. However, at best, the United States will still have a relatively uncompetitive corporate tax system
(Excerpt) Read more at nationalpost.com ...
I really don't think that is an accurate characterization of the Obama regime.
“U.S. can learn from Canada’s lower taxes”
Obama would rather emulate China.
Let’s learn the good parts and ignore or better yet, refudiate (thanks Sarah) the bad.
bkmrk
The libs seek the destruction of the wealth that is generated by and in the hands of conservative middle class Americans. Once that is accomplished then they can start imposing their version of what our lives should be.
“U.S. governments spend as much as Canadian governments today — 40% of GDP — but run massive deficits, more than 10% of GDP.”
Why? Lower taxes. ;)
Despite the headline, overall taxes are 10 percent higher in Canada.
Meanwhile, the average citizen in Canada is crippled by so many taxes on so many levels that it’s almost unbelievable. Everyone else is starting to revolt .... it’s almost time for a Canadian tax revolt.
We pay a fortune here for health care. I have friends in Canada who get great care, and they pay for it with a 13% tax rate on goods and services. They like it. Everyone pays.
We pay more here. Blue Cross is forever raising their rates.
We have to pay for those who don’t pay.
But on the economy, our friend sin the Great White North are whupping up on us big-time. It’s sad when a socialism-loving country like Canada has better tax policy than the U.S.
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