Should Canada raise the corporate tax rate?
Big corporations stay in Canada when their economic criterion is met.
Canada, like its southern neighbour, is a land of opportunity, where enterprise and hard work is, or should be, rewarded. John Deere Corporation, by this September, will have closed its Ontario manufacturing plant and moved south.
Around 300-plus jobs will be gone.
I recall here in B.C. not that many years ago B.C. had a vibrant truck manufacturing industry based in Kelowna.
We can only guess the basis for the corporate decision to move this plant to Oregon.
I view the development of Williams Lake’s log-home building industry as a perfect example of our country’s free-enterprise system in action.
The part that gets me is that there is always a number of people who stand around pointing their fingers at such successful enterprises and complain about all the money they are raking in.
If they do rake in money, it is because they had the gumption, fortitude and guts to develop their industry.
The Economic Impact of Corporate Tax Reductions reports the economy will see nominal GDP grow 3.2 per cent to $51.6 billion and there will be a 0.52 per cent drop in unemployment with a net gain of 98,800 jobs over the next two years.
A typical per capita Canadian will benefit too, pocketing an extra $880 or so over that same period.
Overall, personal incomes will increase by $30.4 billion or 2.4 per cent, while governments can expect an extra $2.6 billion to $3.7 billion in net revenues.
Not looking at this picture with myopic eyes, when the economic picture is financial growth, industry expands, creating more jobs, similar to a logging company buying new machinery that someone has to manufacture.
I recall watching a video of Russian brick layers of a generation ago.
Their work was atrocious.
They got paid anyway.
If we don’t help and reward enterprise we could end up with a country of, who cares, as long as the money lasts, we get paid anyway.