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A few months ago, I tore a strip off Barrie McKenna’s column on internal trade. But today I write to praise his column on corporate taxes: U.S.-based companies . . . are taxed by the Internal Revenue Service on their global income. So any profits they don’t reinvest and try to repatriate are hit with [...]
Andrew Jackson has engaged perhaps the strongest theoretical argument for corporate tax cuts: that they make more new investments viable by lowering the pre-tax return needed to get over an after-tax hurdle rate of return. (Indeed, I remember the C. D. Howe Institute’s Finn Poschmann lionizing Andrew Coyne for making this argument halfway through TV [...]
I have reviewed Jayson Myers’ recent Canadian Manufacturers and Exporters report on corporate tax cuts, which I made public yesterday. Proponents of lower corporate taxes usually argue that these will help Canada compete with other countries in attracting internationally-mobile investment. However, as Myers admits, “over the past decade, reductions in Canada’s effective and average combined [...]
Jayson Myers from the Canadian Manufacturers & Exporters (CME) is touting a report supposedly showing that corporate tax cuts will create 99,000 jobs. News stories indicate that it is “set for release” or “being released Wednesday morning.” I could not find the report online, so I phoned the CME. I was initially told that it [...]
Today Stephen Harper announced that the Conservatives will support the hard hit manufacturing sector by “abolishing tariffs on a wide range of imported machinery and equipment.” There’s no question that higher rates of real investment in new plant and equipment are essential to a manufacturing recovery. That’s why manufacturing unions, the CLC and all parties [...]
The presentations from the Ottawa Economics Association’s 2007 Policy Conference are now available online. They include a fascinating exposition on China’s manufacturing sector, a business perspective on Canadian manufacturing, Buzz Hargrove on the Canadian economy, and the Fraser Institute’s take on global warming.