Discussion in 'Current Events' started by Lue C Fur, Mar 14, 2010.
I can see why some companies leave to other countries...just look at Japan and America.
OTTAWA -- In a clear indication that Canada is starting to be considered a low-tax place to do business, Tim Hortons Inc. announced Monday plans to shift its base of operations from Delaware to Canada for tax purposes.
Further, analysts indicate this is also a sign of unease among corporations regarding the U.S. business environment, where taxes are likely heading upward to deal with trillion-dollar deficits and proposed health-care reforms; and the White House is looking to crack down on companies that invest abroad.
In Canada, the federal corporate tax rate is headed to 15% in 2012, and the federal Conservative government has called on the provinces to get to a 10% business levy by the same timeframe – for a combined 25% rate on corporate income. Alberta is already at 10%, British Columbia will be there in 2011, Ontario by 2013, and New Brunswick will go down further, to 8%, in 2012.
In the United States, the top corporate tax rate is in the mid-30% range. As a result, the U.S. now has about the highest combined corporate tax rate, second only to Japan among industrialized countries.
Finally, there is the current White House proposal to remove the incentives for U.S. companies to invest overseas, and curb the use of offshore jurisdictions by companies and investors.
“If the U.S. tightens up on the tax treatment on foreign income, many Canadian companies — as well as other foreign entities operating in the U.S. – might look to put headquarters and holding company functions in Canada since dividends from foreign affiliates are not taxed by Canada,” said Jack Mintz, a public policy expert from the University of Calgary and a renowned tax expert.
Hey Klein...dont toot your horn to loud...your the 3rd highest just behind America. Look at your personal tax rate...ouch!!! Got to pay for that national health care.
Look at the hardcore socialist countries like France, Sweeden, Germany...they tax their people to death.
Those are rates from 2005, though. Since then we had personal income taxes cut, as well as the GST dropping by 2%.
It has all changed since then, and will continue to change until 2012.
Then new tax cuts will be announced, hopefully.
gee thats the same thing our socialist leader tells us.
Just with the exception, that we follow thru with the forecasted budget. Even in these tougher times, as of Jan 1st, 2010 corperate taxes have followed the 5 year budget, and has been reduced to now 17% (from 22.5% in 2007). And every year from then on, they followed the budget reduction.
Next year it's at 16% and by 2012 15%. The lowest corperate taxes in the G7.
Provincial taxes accross the country will be lowered to atleast 10%, for a total percentage of 25% Canada wide Corperate Taxes.
It's a move to get, (and keep), more manufacturing jobs here. We shall see if it works.
I can't see any leader in the US promising tax cuts. Not with that huge debt load. Where did you get that from Tie ? just wondering.
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