Thursday, March 8, 2007

Think Tank: Eliminate Corporate Taxes

Here`s something to rally behind: the Institute for Competitiveness and Prosperity recommends eliminating corporate taxes to help beat the prosperity gap between Canada and the United States. The current gap is $9,200 but could rise to $17,400 by 2020 unless something is done about it.
Canada had a combined federal, provincial corporate income tax rate of 34.6% in 2006, compared with 12.5% for growth tiger Ireland, and 17.5% for Hong Kong. Add on other levies such as taxes on corporate capital and Canada had the sixth highest tax on business investment of 36 leading and industrial countries last year, according to the C.D. Howe Institute.
Keeping capital away is no different from keeping jobs away.