A lot of bloggers have been praising the opt-ed by Washington Times journalist James Bacon titled "Go north, young man, go north - Canada is quietly surpassing the U.S. as the land of opportunity".
"Look what's not happening in Canada. There is no real estate crisis. There is no banking crisis. There is no unemployment crisis. There is no sovereign debt crisis. Recent reports suggest that consumers are loading up too much debt, but Canada shares that problem with nearly every other country in the industrialized world."
"Now, instead of expanding Canada's welfare state, the conservative government led by Mr. Harper is intent upon building the nation's global competitiveness. Our friends in the Great White North cut their corporate tax rate to 16.5 percent on Jan. 1 and will see it drop to 15 percent next year. That compares to the current U.S. corporate tax rate of 35 percent. That will give Canada the lowest corporate tax rate among the G-7 nations and an eye-popping advantage for businesses wondering whether to locate on the U.S. or Canadian side of the border."Wait a sec... 35% U.S. corporate tax rate compared to 15% in Canada?!!! That's a huge difference. Luckily, I work for a good company that has profit shares, share options, and wide benefits. With a lower corporate tax rate, those savings are simply passed onto our employees. Then, guess what, the government still gets its money from income tax, CPP, and EI deductions.
All the lefties like Jack Layton bash business when they see that companies get to keep more money. It makes no sense to me and defies logic. Here they want their union members to get more benefits from a company but want to tax those same companies at a higher rate.
With the Canadian Loonie and U.S. Greenback now at par for some time, will Canadian investors keep their money in Canada or buy up companies in the U.S. and abroad, or both?