Business Tax Rates
Canada has been steadily moving to one of the lowest corporate tax rates in the world, recently moving to the eighth most advantageous places to pay corporate tax. Now, that's not just tax rates... that takes into account things like the complexity of the country's tax codes, the amount of red tape, and how difficult it is to file the taxes.
Now, as much as I view this as good news, it makes me wonder exactly how much room there is to raise taxes in Canada. Are we too low? We talk about American taxes so much and raising tax rates there... it seems logical on the surface that Canadian corporation have room to contribute more too.
As some may have noticed, I am a huge advocate of paying down the national debt, I see a country's public debt as one of it's worst enemies. Canad has recently hit the $600 Billion mark in public debt and I am hoping Harper will be able to not just balance the budget, but follow in the previous Liberal government's footsteps and actually start paying off our national debt.
So, is raising corporate tax rates, even just by a bit, the answer to balancing the budget?
Canada has moved up three places to eighth in a global comparison of the most advantageous place to pay corporate taxes, placing the country in the top 10 for the first time.
The annual study by PwC, in conjunction with the World Bank and the International Finance Corporation, shows Canada moving sharply up in a 185-country comparison.
Canada placed 28th as recently as 2010, but continuing reductions of the corporate rate both federally and provincially, as well as reduced red tap, has dramatically improved its standing.
The advance, from a business point of view, coincides with the federal government's efforts to brand a 25-per-cent national corporate tax rate, harmonization of sales taxes in Ontario, and improvement in the easy of filing taxes.
"As far as most countries are concerned, we're actually a pretty friendly jurisdiction," said Jason Safar, a partner with PwC's tax service in Toronto.
"Canada's current tax laws have attractive tax regimes, which impact all companies Ã¯Â¿Â½ in particularly small-medium sized domestic companies."
Here is a link that might be useful: Corporate taxes