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Liquid Chalk Canada

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Canada has been able to overcome its disadvantages in recent years by being highly competitive on business taxes. Unfortunately, the tendency of Canadian provincial and federal governments of late to raise taxes has been rapidly erasing that slight advantage.Dangerously, Canada is quickly losing its competitive edge, according to a new report by co-authors Phil Bazel and Jack Mintz . "Some major economies with whom Canada directly competes for investment have recognized the need to make themselves more attractive to investors. Denmark , Japan , France , Portugal , Switzerland and the U.K. have all taken steps to reduce their corporate tax load.As a result of their cuts, and because of Canadian policy changes that have increase the marginal effective tax rate (METR) on business here, Canada has moved from having the 16th-highest burden on capital in the OECD (which was middle of the pack) to having the 13th highest. In the G7, Canada had the lowest METR we are now sixth highest," said Jack Mintz , President's Fellow at The School of Public Policy. The blame for this is shared by provincial and federal governments. In recent years, governments in Newfoundland and Labrador , New Brunswick , Alberta and B.C. have all raised business taxes ( Alberta now has a higher corporate income tax than B.C., Ontario or Quebec ). Quebec has scaled back incentives for investors, Manitoba increased its sales tax, and B.C. eliminated the harmonized sales tax, reintroducing the burden on business inputs implicit in the provincial retail sales tax.With the U.S. election of Donald Trump who promises to reduce corporate income taxes and recent pledges by the UK's Prime Minister to reduce corporate taxes the pressure is on Canada to reduce corporate taxes.

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