Posted on 08/26/2014 11:45:00 AM PDT by TangledUpInBlue
While members of Congress spent the last decade lobbing cow pies at each other, their counterparts in Canada were accomplishing what Washington should have been doing: streamlining the nation’s tax structure to attract more companies.
It worked. Burger King (BKW), based in Miami, hopes to acquire the Tim Horton’s (THI) chain, based in Oakville, Ontario, and relocate the headquarters of the combined company to Canada. The so-called tax inversion that would be part of this deal would give the new firm a sizable tax break, on account of the lower rates in Canada. With many nations lowering their corporate tax rates in recent years, the U.S. rate of 35% is now the highest among developed countries. The federal rate in Canada is a scant 15%.
(Excerpt) Read more at finance.yahoo.com ...
Canada's taxation scheme is extensive. The VAT applies to many more transactions than state sales taxes and the VAT in Canada is at both the National and Provincial level.
But the take away is simple. The corporate tax rate MUST be lowered. There's simply no incentive for businesses to be here.
One can only hope that Canada will ramp up military spending in order to protect the global interests of their new found corporate citizens so the U.S. won’t have to. Eh?
The US corporate rate is more like 40%. US corporations pay both Federal (35%) and State returns. Most states have corporate taxes.
Our (Canada’s) health care system saves big employers a lot of money. While many employers offer supplementary health benefits, employers are not responsible for contributing to the cost of the health care system (outside of the share of corporate taxes that are used to fund the system).
We probably won’t have any choice in the matter. Recent events have demonstrated that we can no longer count on the US having our backs (with the exception of Americans who, as they did in 1939-1941, will come here to enlist).
Canada Ping!
Until Justin Trudeau and the Liberals come to power ,then it’s DOWNHILL FAST
If the U.S.A. continues to sink into decadence, you can expect to watch U.S. citizens fleeing to Canada too.
That’s a good one!
Maybe, but the Liberals seemed to have learned something from the 90’s, and at least until Trudeau have been fiscally to the right of the RINOs. Chretien balanced more federal budgets than the Republicans have from their inception.
Wow, the guys responsible for Geddy Lee’s highest-charting single, too.
You're welcome ;-)
A better reason, imo, that US companies will flee to Canada is the following. The parents of the owners of these companies never made sure that their children were taught about the federal government's constitutionally limited powers, including Congress's limited power to lay taxes.
More specifically, and as posted in related threads, Justice John Marshall had officially clarified that Congress is prohibited from laying taxes in the name of state power issues, essentially any which which Congress cannot justify under its constitutional Article I, Section 8-limited powers.
“Congress is not empowered to tax for those purposes which are within the exclusive province of the States.” —Justice John Marshall, Gibbons v. Ogden, 1824.
So corrupt Congress actually doesn't have the constitutional authority to lay much of the taxes that US companies are trying not to pay.
As a side note concerning the federal government's constitutionally limited powers, please consider the following. The states would sure be a dull, boring place to grow up and live in if parents were to make sure that their children were taught about the federal government's constitutionally limited powers as the Founding States had intended for those powers to be understood. /sarc
Thomas Jefferson had put it this way:
“Cherish, therefore, the spirit of our people, and keep alive their attention. If once they become inattentive to the public affairs, you and I, and Congress and Assemblies, judges and governors, shall all become wolves [emphasis added]. It seems to be the law of our general nature.” - Thomas Jefferson (Letter to Edward Carrington January 16, 1787)
In fact, forget about traditional salesman / sucker cliches like "buying the Brooklyn Bridge." Voters now have to deal with the problem that they have foolishly traded their votes for constitutionally nonexistent rights, federal spending programs and restrictive federal regulations which are likewise based on constitutionally nonexistant federal government powers.
True, but Chrétien had no choice in the matter. He was elected on a platform of free daycare and prescription meds for all but ended up slashing spending because Canada ran out of other people’s money. It was an object lesson about how the most important aspect of democracy is not getting the right people into power, it’s about making the wrong people do the right thing.
Canada still does not have access to cheap money the way the U.S. does, and the effective separation of the power to print money from the fiscal responsibility for education and medical care are also huge advantages. I’d take Trudeau over Obama, and with these additional checks, Canada is still going to look better. So long as Harper can hang on, it is an absolute no-brainer.
Burger King goes Galt.
with the tax laws as they are, the “foreign” BK can lend money to the US BK and make their tax bill ZERO. Interest is tax deductible.
Obama is stuck on stupid.
John Galt wins again.
Yes, I really think that even if Trudeau wins we can keep him in check. We’re approaching the party’s longest stint in opposition since the 1890s and our banking & corporate culture would make it very difficult for him to get away with some of our past foolishness. One of the biggest advantages we have, not mentioned in the article, is the ban on corporate & union donations to political parties. That has gone a long way towards keeping cronyism in check IMO.
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