The Globe and Mail reports (ht: Wendy Waters):
Mr. Obama now proposes to levy a $210-billion tax increase (over 10 years) on U.S. corporations that operate through foreign subsidiaries – making them, by and large, the (nominally) highest-taxed corporate entities in the world. This will be negative for the United States, potentially terrific for Canada.
Beginning soon, major U.S. corporations can be expected to move head offices to Toronto and Calgary to take advantage of the lowest corporate tax rates (by 2012) in the G7. In the end, Mr. Obama will have ensured neither revenue nor jobs.
May 15th, 2009 at 9:21 am
Can any of you obama supporters read the above, and tell me with a straight face this will be good for the economy or the US job market?
Not exactly the CHANGE I’d HOPEd for
May 15th, 2009 at 11:20 am
Canada should follow suit.
May 15th, 2009 at 12:58 pm
What’s the problem Jim H? Did your corporate subsidies and corporate welfare go away?
May 15th, 2009 at 3:29 pm
Mad, I’m not sure what you’re talking about(?) I am against corporate subsidies and bailouts.
As for the excessive corporate tax rate in the US, you need to understand that there is a difference between evasion and legitimate avoidance. Raising taxes NEVER has a positive effect, and it will only exacerbate our unemployment situation.
Higher Taxes=Higher Unemployment
May 15th, 2009 at 4:41 pm
Actually, I have heard from a good source that Ontario is the LAST place anyone would want to do business.
May 15th, 2009 at 7:20 pm
The problem isn’t with manufacturing and selling oversees, it’s with companies that set up phony shell corporations and use accounting tricks to move money around simply to avoid taxes. Like the unregulated derivatives that crashed the US & world economies, these aren’t value creating tools that add to society but phony loopholes that steal from society. Their aim isn’t to prevent double taxation in two countries, but to avoid taxation in any country while taking advantage of benefits that others pay for. This is a self-generated corporate subsidy.
Does Canada have the same problem of companies that set up shell corporations in tax evasion havens like the Cayman Islands? What do you do about it?
May 16th, 2009 at 2:56 am
If the problem is phony corporations, is the solution to tax all US corporations who operate foreign subsidiaries?
In 10 years time, the phony corporations will have disappeared and that money will have moved into other tax loopholes, but the genuine subsidiaries will continue to pay the higher taxes.
As usual, the long-term effect will be to punish the good for the sins of the bad.