TORONTO, Sept. 18 /CNW/ - Canada's tax burden on business investment
ranks 11th highest among 80 countries, as measured by the effective tax rate
on capital, according to tax experts Duanjie Chen and Jack Mintz, authors of
the C.D. Howe Institute e-brief "Still a Wallflower: The 2008 Report on
Canada's International Tax Competitiveness."
This stiff burden on business growth indicates the need for a new
approach to industrial policy and tax reform, which ought to be an important
topic in the current federal election, say Chen and Mintz.
In comparison to the 80 countries surveyed, Canada's effective tax rates
on capital, at 29.1 percent in 2008, are lower than China's (45.3 percent) and
India's (37.6 percent) but higher than those in the US (26.5 percent), the UK
(28.7 percent), Italy (28.1 percent) and Germany (27.3 percent). Canada's
rates are far higher than those in a host of countries, such as Mexico (15.4
percent). Chen and Mintz emphasize that Canada's ranking continues to reflect
high effective tax rates on capital for the services sector.
The authors conclude that Canadian governments should concentrate on
reforms that not only lower tax rates but reduce differences among effective
tax rates across industries.
The report is available at: LINK: http://www.cdhowe.org/pdf/ebrief_63.pdf
For further information:
For further information: Jack Mintz, Palmer Chair of Public Policy,
University of Calgary; Duanjie Chen, George Weston Analyst in Tax Policy, C.D.
Howe Institute, (416) 865-1904