Abolish the corporate income tax

[Glacier]

At first I viewed Andrew Coyne's idea as one that robs Peter to pay Paul, but then I got to thinking about my TFSA, and now I'm in support of his idea. Here is why. Any money I save goes into a TFSA whereby I buy stocks. Now since the account is a tax-free account, I have a disincentive to buy Canada stocks because I'm saving more potential tax money by investing in foreign stocks. If there were no corporate tax, this disincentive would be gone.

[Static]

Makes sense to me. At the end of the day, corporations do not pay tax anyways, the consumer pays it. If a company does not make enough after-tax profit then they either they cut costs (job loss) or raise prices.

[Poindexter]

The corporate tax rate in Canada and the US is among the highest in the world. The reason corporations don't pay that rate is they are able to move profits overseas to countries that provide a tax haven. Small to medium sized businesses who can't do this end up paying more than their fair share. Not a great thing when you consider they create the majority of jobs in the economy. But I can see the logic in this notion of zero taxes for corporations. In the end the current system only incentivizes taking profits overseas and reduces investment domestically.

[hobbyguy]

Actually no, Canada's corporate tax rate is the lowest in the G7, and maybe, maybe just barely above China. http://taxfoundation.org/blog/canada-cuts-corporate-tax-rate-15-lowest-overall-rate-g-7

Add in the rorting, and the contributions to the federal tax revenues have declined a whole bunch. The movement of money to tax havens is not supposed to happen, but when you have a government that believes in corporatism, it does.

Giving in, and declaring surrender to the corporatist forces that are running "our" government by removing the corporate tax rate altogether? Now that is defeatism. And the end of what few shreds of democracy we have left.