Moneyohcanadahastherightcorporatetaxidea

Sat Jan 3, 2015, 12:32 PM

Canada Cuts Corporate Tax Rate to 15%, Lowest Overall Rate in G-7

On New Year's Day, while Americans were sleeping off their hangovers, Canada achieved its goal of having the most business-friendly tax system of the Group of Seven (G-7) nations - which include, Canada, France, Germany, Italy, Japan, the United Kingdom and the United States.

On January 1st, Canada's federal corporate tax rate automatically fell to 15 percent from 16.5 percent as the last installment of a series of corporate rate cuts launched in 2006 by the administration of Prime Minister Stephen Harper. When Harper initiated his campaign, Canada's overall corporate tax rate was 33.9 percent according to the OECD, third-lowest in the G-7. The federal corporate rate was 22 percent and the average provincial rate was 11.8 percent. Today, Canada now has an overall corporate tax rate of 25 percent, the lowest rate of the G-7 nations.

Canada can only revel in its lowest-tax status for a few months because on April 1st, Great Britain will lower its corporate rate to 25 percent from 26 percent. Britain's rate is schedule to fall even further to 23 percent by 2014. Over the past six years, the only G-7 nations that have not cut their corporate tax rate are France, Japan, and the United States. Japan and the U.S. have combined corporate rate over 39 percent

(snip)

The drive by Canada and the U.K. to have the lowest corporate tax rates in the G-7 cannot be ignored. Canada is, after all, our largest trading partner, and the U.K. is our sixth-largest trading partner. Perhaps not so coincidentally, China - America's second-largest trading partner - also has a corporate tax rate of 25 percent, nearly 15 percentage points lower than the U.S. rate.

13 replies, 1693 views

Reply to this thread

Back to top Alert abuse

Always highlight: 10 newest replies | Replies posted after I mark a forum
Replies to this discussion thread
Arrow 13 replies Author Time Post
Reply Canada Cuts Corporate Tax Rate to 15%, Lowest Overall Rate in G-7 (Original post)
Gamle-ged Jan 2015 OP
exindy Jan 2015 #1
Bob the Bilderberger Jan 2015 #2
rampartb Jan 2015 #5
shortviking Jan 2015 #8
TexMex Jan 2015 #9
Trainman95630 Jan 2015 #3
ol geezer Jan 2015 #4
Maine Jan 2015 #6
akaConcernedCanuk Jan 2015 #10
Trainman95630 Jan 2015 #11
Fiendish Thingy-BC Jan 2015 #7
Trainman95630 Jan 2015 #12
Fiendish Thingy-BC Jan 2015 #13

Response to Gamle-ged (Original post)

Sat Jan 3, 2015, 12:50 PM

1. It isn't the rate on paper unless the paper is a bill.

OTOH, it shows that corporations own quite a few countries. And can set their own taxes.

This also proves that corporations have gone beyond having one US state competing against the other in the race to the bottom, now they've managed to get countries to compete in the race to the bottom.

There can be only one.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Gamle-ged (Original post)

Sat Jan 3, 2015, 12:54 PM

2. And this

from an otherwise socialist nation. Of course, the corporate tax rate should be 0% because it only gets passed along to their customers anyway.

It reminds me of when the Soviet Union fell and Russia re-organized their system. Their chosen personal income tax was a flat tax of 10%.

Our tax system is more Marxist (progressive rates) than Russia's.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Bob the Bilderberger (Reply #2)

Sat Jan 3, 2015, 01:57 PM

5. bob, why shouldn't the customers of the corporation pay the taxes?

why should that tax bill be socialized, to be paid by society as a whole, including many who choose not to be customers of the tax dodging corporations?

i'm also having a little trouble finding marx's plan for income tax in the communist manifesto, is that in das capital?

Reply to this post

Back to top Alert abuse Link here Permalink


Response to rampartb (Reply #5)

Sat Jan 3, 2015, 03:54 PM

8. That's what income tax is for.

 

Pick one or the other, but the double taxation needs to stop.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Bob the Bilderberger (Reply #2)

Sun Jan 4, 2015, 08:35 AM

9. 10% works

 

to a degree because it brings so many tax cheats into compliance. Most admitted tax cheats are the folks whining about taxes they cheat to avoid (rich irony me thinks).

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Gamle-ged (Original post)

Sat Jan 3, 2015, 01:04 PM

3. Can we adopt Harper and have him run things here?

 

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Trainman95630 (Reply #3)

Sat Jan 3, 2015, 01:19 PM

4. Oh, hell no!

Harper's hero is George Walker Bush. Do you really want that again? More wars, more building falling down, more bridges falling down, more debt, more unemployment? I hope not.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to ol geezer (Reply #4)

Sat Jan 3, 2015, 02:01 PM

6. Yeah! We have that already with Obama....

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Trainman95630 (Reply #3)

Sun Jan 4, 2015, 10:57 AM

10. - By all means - I'll help pay for the adoption process.

.
Harper "raised" us from lowly "Peacekeepers" to partners in the USA's war-machine - now WE are bombing in the Middle East and Europe,

as if the USA really needs the use of our tiny armed forces -

Harper silences objections/criticisms from his own ministers - ejecting them if they prove too productive.

This is not the Canada I was proud of for most of my life -

The pride is long gone . . .

(sigh)

CC

Reply to this post

Back to top Alert abuse Link here Permalink


Response to akaConcernedCanuk (Reply #10)

Sun Jan 4, 2015, 11:03 AM

11. What you are experiencing is a shot of

 

testosterone running through the lifeblood of your country. You'll get used to it and it won't bother you in the near future.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Gamle-ged (Original post)

Sat Jan 3, 2015, 02:12 PM

7. ...and right on to the backs of the middle class

with Harper frittering away the small budget surplus on some daycare rebate for parents, and income from oil dropping by half, Canada will likely be in recession by the second half of 2015, as the ripple effect from oilfield layoffs tears through retail, real estate, etc.
As Harper is not likely to be reelected in October, or survive a confidence vote afterwards in November if he is, the U.S. is welcome to him.

The budget deficit will balloon, and taxes will have to be raised, not only to maintain services like healthcare, but to cover an explosion of defaults on mortgages that are insured by the Govt., similar to how FDIC insure depositors. Harper made it easier for unqualified borrowers to get mortgages to houses they had no business owning, creating a housing bubble worse than the one that popped in the US.

If the new administration doesn't raise corporate taxes, they will have to balance the budget on the backs of the middle class, or print/borrow money, further devaluing the Canadian dollar against the U.S. dollar.

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Fiendish Thingy-BC (Reply #7)

Sun Jan 4, 2015, 11:05 AM

12. Informative post

 

Will keep my eye on things up there. Hard to believe they let this happen :

to cover an explosion of defaults on mortgages that are insured by the Govt., similar to how FDIC insure depositors. Harper made it easier for unqualified borrowers to get mortgages to houses they had no business owning, creating a housing bubble worse than the one that popped in the US.

after watching what happened to us in 08

Reply to this post

Back to top Alert abuse Link here Permalink


Response to Trainman95630 (Reply #12)

Sun Jan 4, 2015, 02:04 PM

13. Harper saw what was happening in the US

And rather than let Canada's market go through a natural correction (and possibly lose an election) that probably would have been shallower than thebUS, but still painful, he chose to create conditions allowing households making just above minimum wage to buy homes with no money down. Of course, as more buyers qualify for loans, competition increases, resulting in bidding wars for 500 sq. ft. Condos that can sell for up to $500k in Vancouver. It's insane... Now when the bubble bursts, it will likely be far worse then in the US.

The mortgage insurance agency is the CHMC. They have been authorized to insure up to , IIRC, $680 billion in mortgages, and I think are at $660 billion now.

2015 is going to be an interesting year for Canada.

Reply to this post

Back to top Alert abuse Link here Permalink

Moneyohcanadahastherightcorporatetaxidea