New paper by Jack Mintz ranks the ability of Canadian provinces to attract business
CALGARY, Jan. 25 /CNW/ - Today, Prof. Jack Mintz, Director of the School
of Public Policy, released a paper that analyzes the tax regimes of the
federal and provincial governments, and determines their relative
ability to attract business and investment.
Mintz calls Alberta, B.C. and New Brunswick the most competitive
provinces in Canada, and singles out Quebec, Saskatchewan and Manitoba
as the least competitive. In Ontario, Mintz calls the HST and income
reforms in the 2009 budget the boldest tax reform of 2010. "This caused
a huge drop in Ontario's and Canada's marginal effective tax rate on
business," Mintz said. "But it's not enough. Ontario simply will not be
able to compete with Alberta and B.C. if further reductions in
corporate taxation are not made."
Mintz has frank advice for the federal government. Corporate tax cuts
must continue as planned to keep Canada competitive. In his words,
"Governments around the world are waking up to the reality of global
competitiveness. To create jobs and attract investment, corporate taxes
must be kept in check. Further, Canada needs to work to make sure its
tax burden is neutral, otherwise we're sapping productivity."
Mintz worries about the call from federal opposition parties to revoke
corporate tax cuts. "Canada is in the middle of the pack globally," he
said. "We're just beginning to stake our claim as a country that is
good for business. To revoke Canada's planned corporate tax cuts would
reverse that trend, and cost jobs, business growth and competitiveness.
Calling for an increase in corporate taxation is irresponsible policy
as far as the overall economy is concerned."
A copy of the paper is available at www.policyschool.ca under the "recent papers" section.
SOURCE University of Calgary - School of Public Policy
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