New paper by Jack Mintz ranks the ability of Canadian provinces to
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 New Brunswick, Alberta and B.C. the most competitive
provinces in Canada, and singles out Quebec, Prince Edward Island,
Saskatchewan and Manitoba as the least competitive. "But we need to
put an asterisk next to New Brunswick on this list," said Mintz today.
"While the overall cost of doing business in New Brunswick leads the
country, and New Brunswick's previous and planned tax reforms are a
model for other provinces, the federal Atlantic Investment Tax Credit
needs to be eliminated because it hurts productivity and actually
offsets gains realized from made-in-New Brunswick tax policy."
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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