Tax Cuts, Less-Intrusive Government Help Canada Soar
January 4, 2012
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, says Investor's Business Daily.
- Last 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 percent.
- Along with fresh tax cuts in provinces such as Alberta, total taxes for businesses in Canada will drop to 25 percent, one of the lowest in the G7, and below the Organization of Economic Cooperation and Development average.
It's not just that Canada's conservative government favors makers over takers.
- Harper's also wildly popular for shrinking government and has made signing free trade treaties his priority.
- Canada now has 11 free trade pacts in force, and 14 under active negotiation -- including pacts with the European Union and India, among others.
- Lastly, Canada has pursued its competitive advantage -- oil. And it did so not through top-down "industrial policy," but by getting government out of the way.
Canada's incomes are rising, its unemployment is two percentage points below the U.S. rate, its currency is strengthening and it boasts Triple-A or equivalent sovereign ratings across the board from the five top international ratings agencies, lowering its cost of credit.
Is it too much to ask Washington to start paying attention to the Canadian success story?
Source: "Tax Cuts, Less-Intrusive Gov't Help Canada Soar," Investor's Business Daily, December 29, 2011.
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