Canadian corporate taxes will do more to fight socialism in the US than the Tea Party ever will.
Hat tip to the cartoonist.
Canadian corporate taxes will do more to fight socialism in the US than the Tea Party ever will.
Hat tip to the cartoonist.
That doesnt include provincial taxes – it’s a lot closer than the graphic implies. And there are a whole host of other issues from labour productivity to closed shop unions to the cost of living that are decidedly in the US’s favour and some that are in Canada’s favour.
Corporate Canada has every opportunity needed to thrive right now. If the next 4 years don’t produce some slam dunk results….I’m talking new headquarters, new inventions, increased productivity, new inventions, more R&D, low unemployment and increased standard of living…then the NDP will run on a campaign of hard socialism because Harper was wrong.
Captain, please elucidate, thnx.
Alberta has a flat tax with no provincial tax.
I see a lot of buisness heading our way if Obama raises taxes California style.
Already Corporations are setting from the States are setting up headquaters in Calgary & Edmonton.
Very tentivly though. I fgure they are waiting to see if Obam is reelected.
If he is, than a stampede will ensue. Of American buisness fleeing an infatonary tax hit.
Its what happend to Quebec, with Britian as well.
JMO
Revnant dream: you are referring to personal rates. The graphic refers to corporate rates. Provinces charge a small biz tax or a large biz tax which can be as high as 16%. Thus the rate is as high as 32% plus businesses collect a Vat that the us doesn’t have of 5% and that is collected before income is reported so it would be even higher than simply adding it to 32%.
As I said above – it’s all lot closer situation than the graphic depicts.
Even with the provincial rates factored in, we’re ahead. And we’re ahead on capital gains taxes.
L-a-b:
Not by much and not at all in some jurisdictions. And tax rates are only a part of the decision – would you move your manufacturing plant from right to work north Carolina to closed shop Canada? I sure wouldn’t.
Maybe. The unionization rate is higher in Canada but not by very much. Also, they don’t have to pay for a health plan here. A perverse case of ‘pro-business socialism’-not that I condone public healthcare.
Although the topic is CORPORATE Taxes. Canadians are taxed at a criminal level personally. Taxes have risen 1700% since 1961. Taxes in Canada now consume more of the average Canadian Families budget than Food, Clothing and Housing combined. The well conditioned Tax Slugs in Canada never complain tho, they are well conditioned and always recite their captors praises. “We’ve Never Had It So Good”, “Move To The USA”, “It’s Our Duty”, “Canada Is The Best Place In The World”. Of course what else can they recite. We are all held captive in Canada’s Socialist Velvet Gulag. Rowing At The Oars of the Slave Ship Canada……
Pretendingtobelibertarian is a Liberal troll. If business tax is so awesomely low in Canada, why has all the manufacturing in Ontario moved to the States and then to China from there? Why is Hamilton a post-industrial bedroom community for Toronto? Why are RIM Blackberries made in China and not Guelph?
Because you’re -wrong- is why. Canadian tax and regulation forbid manufacturing, they forbid farming, they forbid mining, and they forbid forestry. The only companies still in business doing anything are guys who can wangle a Special Deal with buddies in Ottawa.
Fascism, in other words. Hitler won. He was just too stupid to stick around and enjoy his victory.
Phantom:
You get up on the wrong side of bed this morning? Forestry is a $45 billion business just in exports, never mind domestic consumption. Mining and oil and gas are over $50 billion. Farming is over $45 billion. I’m too lazy to look up manufacturing, but StatsCan says it was 13% of GDP last year, which would make it worth about $160 billion. These four sectors combined make up about 30% of GDP, so I can’t understand why anyone would say they are “forbidden”.
Oh, and big corporations get sweetheart deals from various levels of government? Quel suprise, as our NDP friend from Quebec might say. I don’t know if you ever read Smith’s The Wealth of Nations, but over 200 years ago, he was complaining “People of the same trade seldom meet together, even for merriment and diversion, but the conversation ends in a conspiracy against the public, or in some contrivance to raise prices.” Today, outright collusion is rarer (though it still occurs), but those with money and patience can persuade governments to grant them favours.
I’m just naturally cranky Kevin. The subject of taxes brings it out more than most.
Yes we export lots of wood, and yes our mines dig up lots of metals and coal, but just try to start any kind of new business. The vampires suck out all your capital pretty much instantly.
Example, ever notice how retail has been condensed into a few megachains with the same crap in them everywhere? Ever wonder why somebody doesn’t start up a competitor and blow them all out of the water selling nicer stuff, or cheaper stuff, or just stuff in your size?
They -can’t- is why. The only thing keeping the megachain in business is Special Deals with three levels of government and mega net worth that allows them to lose money five years in a row and still stay afloat. Look at Zellers, how the hell do they still exist?
Just extrapolate that out and you get Ontario. If you aren’t a legacy business from twenty years ago or more, you’re OUT of business. Or you’re an American chain that makes most of its money elsewhere and maintains a Canadian presence for convenience. Or you have “friends”.
Fascism, KevinB. Its what you call it. A description, not an ephithet.
An yeah, it p1sses me off. My dad and uncles went and got shot at to prevent this in the 40’s, yet here we are.
The cartoonist must be referring to provinces not including Ontario or Quebec.
Otherwise she’d be topless…
There is discussion in Michigan about reducing a lot of stuff that hinders business growth and (re)locating in Michigan.
‘Why are RIM Blackberries made in China and not Guelph?’
Blackberries are assembled in Hungary and Mexico. {The first rollouts are done in Canada.}
If Canadian corperate taxs fight socialism in the
US, what will fight socialism in Canada?
Zeller’s won’t exist in a few more months. They were acquired by the Target chain, who have carved out quite a niche in the US by selling stuff that’s still inexpensive, but a step up from Wal-Martian in quality and style. On my wife’s frequent shopping raids in Buffalo, she spends more money at Target than anywhere else unless she spots a nice outfit at Lord & Taylor.
And yes, today’s so-called “liberals” are not liberal at all; they are fascists at heart. But I also put it down to the bilingualism; because you needed a certain level of facility in French to progress in Ottawa, we got a disproportionate number of French Canadians at the mandarin level. The problem is the French legal mind is based on the Napoleonic Code, where anything that was not expressly allowed was forbidden. The English system operated on the idea that anything not expressly forbidden was allowed. Two very different mindsets, and when I’ve had to deal with French federal bureaucrats, I find it infuriating. It’s the kind of mindset that leads you to fine a farmer who’s pumping out his flooded fields because a few fish got into them.
Las:
The us private sector union rate is less than 9%
In Canada it is over 16% – almost two tines the US rateand all closed shop to boot. So it is not Dramatically higher. And the workplace is more rigid and confrontational.
Final assembly of Electronics tends to be low value, that is why it goes to low cost countries like China.
While most of the jobs might be offshore, they don’t pay very much. The real value you want to capture is the design of products. That is why it is way more important for R&D at a company like RIM to be based in Canada.
For an example, Google “Innovation and Job Creation in a Global Economy: The Case of Apple’s iPod”
An article on this is here: http://seekingalpha.com/article/273777-how-apple-can-prosper-and-create-u-s-jobs-even-with-overseas-assembly
The actual source paper is here: “http://www.usitc.gov/journals/08_LindenDedrickKraemer_InnovationJobCreationiPod.pdf”
One of the biggest problems for business and regular citizens in Canada is TOO MUCH GOVERNMENT. Canadians are controlled by over 500,000 PAGES of Rules, Laws and Regulations. That is equivalent to a stack of paper around 10 stories high. All shuffled from desk to desk of our elite masters by union scale hands making as much as 48% more in wages and benefits as the worker bees. The annual regulatory burden is 105B on the backs of the TAXPAYERS. It all rolls downhill onto the consumer. Cap and Trade excellent, enviro/commie idea, result increased energy costs for the consumer. etc. etc. Keep rowing at the Oars of The Slave Ship Canada. Row Faster the Waves are getting bigger. Governments favourite song, “Send New Money Old Money All Gone”.
When you strip away Phantom’s tantrum I still don’t know what he’s getting at me for. Thing is I agree with him somewhat-our massive regulatory state has ‘corporatized’ our economy to a great degree. Which is why dismantling these regulations should take higher priority than lowering taxes or the welfare state.
Posted by: RFB at 1:23 PM
Megadittos!!
Galleyslaves r’us, and fully indexed pension fatacsts are waterskiing on our hard work
RFB, with respect to your 7:29 post, tell me. Would you rather have high taxes and a good job, or low taxes and no job?
Phantom, the reason for retail concentration is because of low margins and market entry costs. With respect to the latter these are primarily things like advertising. Canada is an easy market for retail chain entry because our retail sector has been so cozy for so long with large retail markups that it’s easy for giants like Target and Walmart to come in. Kissing up to government has little to do with it in this case.
On the resource side, the provinces are more to blame than the feds. Resources is their sector after all, not that of Ottawa.
“Why are RIM Blackberries made in China and not Guelph?”
First time I ever saw my old hometown mentioned on this site, ha. And Guelph will become a ghost town if Linamar ever hits the shoals, I’m afraid. As did General Electric, Imperial Tobacco, and who knows how many others. Although one can thank the brutally overpaid union labor for IT leaving: I guess $30 an hour for union floor sweepers and $45/hr for trades was a wee bit too much, ten or so years ago. Go figure.
Posted by: cgh at July 17, 2011 11:58 PM
We’re back to hewers of wood, once more. There is much more federal regulation than we need for retail: just try to open up a US book chain (Barnes/Noble), or purchase stakes in a failing canuck airline (CP) if you’re a US carrier, or open a newspaper or other outlet if you’re from the states. That primitive “canadian content” rule stands firmly in your way. Look how long it took Fox News to come north.
That’s one of the most fascist anti-business policies in this country, and it prevents commerce AND shuts down new jobs, because these enterprises aren’t “canadian” enough. Bollocks to that. You even witness that facism when you turn on your radio, and each station must play a certain percentage of cancon, for crying out loud. All it does is force consumers to subsidize crappy performers through increased product prices, as bands and individuals who are worth anything can make it on their own in the US without government intervention. Ahh well. It’s the only way the Tragically Hip will ever get airplay, I guess.
mhb23re
RFB, with respect to your 7:29 post, tell me. Would you rather have high taxes and a good job, or low taxes and no job? cgh – what kind of reverse logic did you use to produced such an outrageous, vacant statement?