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 the higher U.S. rate, not […]
Read moreAndrew 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 Ontario’s last post-budget panel.) Imagine […]
Read moreI 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 statutory corporate tax rates have […]
Read moreJayson 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 would be posted around 10am […]
Read moreToday 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 on the Industry Commitee of […]
Read moreThe 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.
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