I’m the Taxman!

Canada has a lower corporate tax rate than the US and yet raises more in taxes from that lower rate.

Here’s a section from the story as it appeared yesterday on the downsizing blog by the CATO institute.

The new budget shows that the Canadian federal 15 percent tax raised 1.9 percent of GDP in revenue in 2012, while the U.S. federal tax at 35 percent raised just 1.6 percent, per CBO.

It’s a two paragraph story with two charts, go check it out.

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Posted on March 26, 2013, in No Hope For America, Problems to Ponder and tagged , , , , , , , . Bookmark the permalink. 3 Comments.

  1. An interesting subject. I wonder how much tax exemptions factor into that figure though. Companies in the US are able to write off business expenses, and can effectively negate their tax rates in certain circumstances due to losses and other methods.

    http://www.marketwatch.com/story/10-us-companies-paying-no-taxes-2013-03-26?siteid=rss&rss=1

    • Very true. Many large corporations know the tax code as well as they do their products. Still on the other hand US companies also can’t bring their overseas revenues back without being taxed on that.

      Just more proof the whole system needs to be redone for the sake of simplicity and accuracy.

  2. I’m sure it’s rough on the smaller companies too. They’ve been hit with picking up higher healthcare costs on top of paying the social security for their employees. I’m willing to bet a lot of companies with <50 employees simply don't have the resources to afford big shot tax attorneys.

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