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Tax Cuts, Less-Intrusive Gov't Help Canada Soar
IBD Editorial ^ | December 29, 2011 | Editor

Posted on 12/29/2011 4:36:22 PM PST by Kaslin

Success: Away from the low growth and high regulation of an America under Washington's thumb, our northern neighbor is economically strong. As 2011 ends, Canada has announced yet another tax cut — and will soar even more.

The Obama administration and its economic czars have flailed about for years, baffled about how to get the U.S. economy growing.

In reality, the president need look no further than our neighbor, Canada, whose solid growth is the product of tax cuts, fiscal discipline, free trade, and energy development. That's made Canada a roaring puma nation, while its supposedly more powerful southern neighbor stands on the outside looking in.

On Thursday, Canadian Prime Minister Stephen Harper announced that he will slash corporate taxes again on Jan. 1 in the final stage of his Economic Action Plan, dropping the federal business tax burden to just 15%.

Along with fresh tax cuts in provinces such as Alberta, total taxes for businesses in Canada will drop to 25%, one of the lowest in the G7, and below the Organization of Economic Cooperation and Development average.

"Creating jobs and growth is our top priority," said Minister Jim Flaherty. "Through our government low-tax plan ... we are continuing to send the message that Canada is open for business and the best place to invest."

It's not just that Canada's conservative government favors makers over takers. Harper's also wildly popular for shrinking government. "The Harper government has pursued a strategic objective to disembed the federal state from the lives of citizens," wrote University of Calgary Professor Barry Cooper, in the Calgary Herald.

(Excerpt) Read more at ...

TOPICS: Business/Economy; Canada; Editorial; Front Page News; Government
KEYWORDS: economicczars; failure; obamaadministration; stephenharper

1 posted on 12/29/2011 4:36:26 PM PST by Kaslin
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To: Kaslin
Love the phrase, "makers over takers." Looks like Canada may embrace at least a portion of the American founding philosophy.

If visitors here have read the following from my previous posts on the subject, just skip; but it seems a good time to repeat the "freedom of individual enterprise" ideas that made America a prosperous and free society.

This essay is excerpted from "Our Ageless Constitution," a 292-page history of the ideas of liberty in America, again available after 20 years of being out of print.

Freedom Of Individual Enterprise

The Economic Dimension Of Liberty Protected By The Constitution

"Agriculture, manufactures, commerce, and navigation, the four pillars of our prosperity, are the most thriving when left most free to individual enterprise." - Thomas Jefferson

"The enviable condition of the people of the United States is often too much ascribed to the physical advantages of their soil & climate .... But a just estimate of the happiness of our country will never overlook what belongs to the fertile activity of a free people and the benign influence of a responsible government." - James Madison

America's Constitution did not mention freedom of enterprise per se, but it did set up a system of laws to secure individual liberty and freedom of choice in keeping with Creator-endowed natural rights. Out of these, free enterprise flourished naturally. Even though the words "free enterprise' are not in the Constitution, the concept was uppermost in the minds of the Founders, typified by the remarks of Jefferson and Madison as quoted above. Already, in 1787, Americans were enjoying the rewards of individual enterprise and free markets. Their dedication was to securing that freedom for posterity.

The learned men drafting America's Constitution understood history - mankind's struggle against poverty and government oppression. And they had studied the ideas of the great thinkers and philosophers. They were familiar with the near starvation of the early Jamestown settlers under a communal production and distribution system and Governor Bradford's diary account of how all benefited after agreement that each family could do as it wished with the fruits of its own labors. Later, in 1776, Adam Smith's INQUIRY INTO THE NATURE AND CAUSES OF THE WEALTH OF NATIONS and Say's POLITICAL ECONOMY had come at just the right time and were perfectly compatible with the Founders' own passion for individual liberty. Jefferson said these were the best books to be had for forming governments based on principles of freedom. They saw a free market economy as the natural result of their ideal of liberty. They feared concentrations of power and the coercion that planners can use in planning other peoples lives; and they valued freedom of choice and acceptance of responsibility of the consequences of such choice as being the very essence of liberty. They envisioned a large and prosperous republic of free people, unhampered by government interference.

The Founders believed the American people, possessors of deeply rooted character and values, could prosper if left free to:

  • acquire and own property
  • have access to free markets
  • produce what they wanted
  • work for whom and at what they wanted
  • travel and live where they would choose
  • acquire goods and services which they desired

Such a free market economy was, to them, the natural result of liberty, carried out in the economic dimension of life. Their philosophy tend­ed to enlarge individual freedom - not to restrict or diminish the individual's right to make choices and to succeed or fail based on those choices. The economic role of their Constitutional government was simply to secure rights and encourage commerce. Through the Constitution, they granted their government some very limited powers to:

Adam Smith called it "the system of natural liberty." James Madison referred to it as "the benign influence of a responsible government." Others have called it the free enterprise system. By whatever name it is called, the economic system envisioned by the Founders and encouraged by the Constitution allowed individual enterprise to flourish and triggered the greatest explosion of economic progress in all of history. Americans became the first people truly to realize the economic dimension of liberty.

Footnote: Our Ageless Constitution, W. David Stedman & La Vaughn G. Lewis, Editors (Asheboro, NC, W. David Stedman Associates, 1987) Part III:  ISBN 0-937047-01-5

2 posted on 12/29/2011 5:25:05 PM PST by loveliberty2
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To: Kaslin; Grampa Dave; tubebender; Ernest_at_the_Beach; thackney; NormsRevenge; BOBTHENAILER

The world used to model it’self after America. Now CANADA is the true MODEL FOR AMERICA!!!

3 posted on 12/29/2011 5:37:56 PM PST by SierraWasp (I'm done being disappointed by "He/She is the only one who can win" and being embarrassed later!!!)
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To: Kaslin

It’s very good news to see Canada doing so well. Hopefully we will get rid of the evil plague in this country soon and partake of traditional American ideology.

4 posted on 12/29/2011 5:40:03 PM PST by formosa (Formosa)
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To: formosa

I pray we do

5 posted on 12/29/2011 5:53:03 PM PST by Kaslin (Acronym for OBAMA: One Big Ass Mistake America)
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To: formosa
Reagan and Mulrooney were tremendous partners who ushered in a period of bilateral friendship, trade, and growth between the two nations. All you need is someone to go with Harper.

I don't mean to tell you what to do, but, Palin, Bachmann, Santorum, even Gingrich or Romney would do fine. Obama's animus toward Canada is palpable.

6 posted on 12/29/2011 6:00:13 PM PST by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)
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To: Former Proud Canadian
Obama's animus toward Canada is palpable.

Obama is an ardent anti Colonialist. Canada ties to Britian I think are at the root of it, ergo sending back Churchill's bust.

So FPC, how far off am I given your background?

7 posted on 12/29/2011 6:18:59 PM PST by taildragger (( Palin / Mulally 2012 ))
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To: taildragger
I think it is more basic. Canada is a first world capitalist democracy. A successful nation that is not afraid to exploit its resources, support Israel, and tweak dictators. As such, it is a bit of a threat to Obama's world view.

I think you are correct in that, when Obama looks north, he sees Britain.

8 posted on 12/29/2011 6:24:14 PM PST by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)
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To: Former Proud Canadian
and tweak dictators

So this means that Harper will be tweaking Obama before too long.

9 posted on 12/30/2011 2:02:06 AM PST by Major Matt Mason (The Chicago Way isn't the American Way.)
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To: Major Matt Mason

I think he already is.

10 posted on 12/30/2011 4:54:15 AM PST by Former Proud Canadian (Obamanomics-We don't need your stinking tar sands oil, or the jobs that go with it.)
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To: Kaslin

Anyone have any clues why the Ireland economic miracle stumbled? They had corporate taxes down to what, 12%?

Did the housing bubble kill them?

11 posted on 12/30/2011 4:58:45 AM PST by listenhillary (Look your representatives in the eye and ask if they intend to pay off the debt. They will look away)
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To: listenhillary

they basically underwrote their banks. So when the banks had big losses, the govt then lost money. Iceland on the other hand refused to do so, so even though their banks collapsed, and Iceland went through deep doo-dooh, they are in a better position now

12 posted on 12/30/2011 6:59:28 AM PST by Cronos (Party like it's 12 20, 2012)
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To: Former Proud Canadian
You are right of course. Let us hope that the majority of voters come to their senses next fall and stanch the bleeding.
13 posted on 12/31/2011 2:54:43 PM PST by hinckley buzzard
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