Main menu:

History of RPE Thought

Posts by Tag

RSS New from the CCPA

  • Report looks at captured nature of BC’s Oil and Gas Commission August 6, 2019
    From an early stage, BC’s Oil and Gas Commission bore the hallmarks of a captured regulator. The very industry that the Commission was formed to regulate had a significant hand in its creation and, too often, the interests of the industry it regulates take precedence over the public interest. This report looks at the evolution […]
    Canadian Centre for Policy Alternatives
  • Correcting the Record July 26, 2019
    Earlier this week Kris Sims and Franco Terrazzano of the Canadian Taxpayers Federation wrote an opinion piece that was published in the Calgary Sun, Edmonton Sun, Winnipeg Sun, Ottawa Sun and Toronto Sun. The opinion piece makes several false claims and connections regarding the Corporate Mapping Project (CMP), which we would like to correct. The […]
    Canadian Centre for Policy Alternatives
  • Rental Wage in Canada July 18, 2019
    Our new report maps rental affordability in neighbourhoods across Canada by calculating the “rental wage,” which is the hourly wage needed to afford an average apartment without spending more than 30% of one’s earnings.  Across all of Canada, the average wage needed to afford a two-bedroom apartment is $22.40/h, or $20.20/h for an average one […]
    Canadian Centre for Policy Alternatives
  • Towards Justice: Tackling Indigenous Child Poverty in Canada July 9, 2019
    CCPA senior economist David Macdonald co-authored a new report, Towards Justice: Tackling Indigenous Child Poverty in Canada­—released by Upstream Institute in partnership with the Assembly of First Nations (AFN) and the Canadian Centre for Policy Alternatives (CCPA)—tracks child poverty rates using Census 2006, the 2011 National Household Survey and Census 2016. The report is available for […]
    Canadian Centre for Policy Alternatives
  • Fossil-Power Top 50 launched July 3, 2019
    What do Suncor, Encana, the Royal Bank of Canada, the Fraser Institute and 46 other companies and organizations have in common? They are among the entities that make up the most influential fossil fuel industry players in Canada. Today, the Corporate Mapping Project (CMP) is drawing attention to these powerful corporations and organizations with the […]
    Canadian Centre for Policy Alternatives
Progressive Bloggers


Recent Blog Posts

Posts by Author

Recent Blog Comments

The Progressive Economics Forum

Up With Corporate Taxes

Progressives often present corporate-tax cuts as having transferred billions of dollars from the Canadian government to big business. This characterization is largely correct, but neglects the fact that many foreign-based corporations operating in Canada are also taxed on a worldwide basis by foreign governments. To the extent that corporations in Canada are affiliates of American and Japanese multinationals, Canadian corporate-tax cuts have simply transferred revenue from the Canadian government to the U.S. and Japanese governments.

As I argue in the following letter, printed in today’s Financial Post, recent corporate-tax cuts should be reversed because they do not increase our “competitiveness” in attracting American or Japanese investment. In fact, shrinking our fiscal capacity while expanding American and Japanese fiscal capacity undoubtedly makes us less competitive. On the other hand, these tax cuts may improve our competitiveness in attracting investment from other countries. At best, the billions of dollars forgone annually through low corporate-tax rates have conflicting effects on Canadian competitiveness.

Our loss U.S. gain?

Financial Post
Saturday, May 26, 2007

Re: A plan for Flaherty, Jack Mintz, May 23

Jack Mintz writes, “foreign companies (especially U.S., Japanese and U.K.) credit Canadian corporate taxes against home tax liabilities on income repatriated from Canada. The full elimination of Canadian corporate tax would result in a revenue transfer to foreign treasuries.” For exactly the same reason, cutting Canadian corporate tax rates below American, Japanese and/or British rates transfers revenue to foreign treasuries.

Because Canadian corporate taxes are already lower than American and Japanese corporate taxes, recent Canadian reductions have not decreased the global tax bill of American and Japanese companies operating in Canada. Far from making Canada more “competitive” in attracting American and Japanese investment, these reductions have simply redirected tax payments from Ottawa to Washington and Tokyo. Finance Minister Jim Flaherty should plug this revenue drain by restoring Canadian corporate tax rates to American levels.

Erin Weir, economist, Canadian Labour Congress, Ottawa

© National Post 2007

UPDATE (May 26): The following table is in response to Simon Black’s inquiry (below). The first three years are from the Mintz report. The most recent one is from KPMG.  Canada and the U.S. have ranges of values due to differing provincial and state corporate taxes.

Corporate-Tax Rates











United States










Enjoy and share:


Comment from <![CDATA[Simon Black]]>
Time: May 26, 2007, 10:30 am

Thanks for this Erin. Where can we find stats that compare US, Japanese and Canadian corporate tax rates over the last 25 years or so?

Write a comment

Related articles