Wednesday, January 04, 2012

In praise of Corporate Tax Cuts

I am pleased that HM Government has further cut corporate taxes. I am also hoping for broad based personal tax cuts. Ultimately, as I have told HM Minister of Finance Jim Flaherty many times, we should have a flat tax.

Why Canada’s corporate tax cuts rate a collective cheer

OTTAWA— From Wednesday's Globe and Mail
Published Tuesday, Jan. 03, 2012 6:29PM EST
Last updated Wednesday, Jan. 04, 2012 6:36AM EST
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In an end-of-year review of his government’s achievements in 2011, Prime Minister Stephen Harper noted Forbes magazine’s selection of Canada as the No. 1 country in the world to do business. (“Credit a reformed tax structure,” Forbes declared.) Mr. Harper was right to cite this distinction. On New Year’s Day, Canada’s corporate tax rate – federal and provincial rates combined – fell to 25 per cent, giving Canada the lowest rate in the Group of Seven countries, and a more competitive economy on a global basis.


Anonymous said...

Unfortunately, the Ontario government is doing a fine job of offsetting lower taxes with extremely high energy costs and over-regulation.

Frances said...

Corporate tax cuts are good, but only when the business is really doing well. On a monthly basis, the forced remittances for EI, CPP, and IT (the latter totally deducted from the employees' paycheques, the other two topped up by government-mandated employer contributions) can cause serious issues with struggling businesses. One doesn't have to be a loss-making business to be affected; any business with loans (to buy equipment, etc.) can have issuess with cash flow. CRA demands the money hit their till on the 15th of the month following the pay period (sooner for really big business), regardless of whether said business has been able to collect income earned from its clients.

I understand the rationale behind said enforced deductions, and also that some companies have wilfully evaded their responsibilities to their employees; but result is that honest small businesses have to look to hiring with an eye to their cash flow and their potential obligations.

I Support Lord Black