Corporate taxes soon to be... reduced?

Article: http://www.theglobeandmail.com/report-on-business/commentary/barrie-mckenna/corporate-tax-cut-dispute-bit-of-a-yawn-for-us-businesses/article1887887/comments/#page


Summary

                         So, it has finally come to Harper's attention or should I say... Canada to realize that U.S's business is substantially doing better than us. Apparently, Harper wants to cut corporate taxes from 19.5 percent to 15 percent next year and in order for this to actually happen, Harper has to battle this out politically. Other parties don't seem to agree with this idea because what would people really benefit from this? Due to past recessions, companies have gone downhill and U.S companies still make up a significant chunk of the Canadian business landscape. Jason Myers president of the Canadian manufacturers and exporters quoted that "the lower tax rate makes their profits look better in Canada, but that just means they are taxed more in the United States."Probably most of the population of Canada would want this.

Connection

                         This article links toward our discussion with Chapter 4 due to involvement of taxation in the government of Canada which is, one of the main taxes that the government makes income. Generally speaking, lowering corporate tax could perhaps bring benefits such as, increase minimum wages, decrease in unemployments, and higher standards of living. Which clearly, would make us quite satisfied to actually encourage ourselves to open up more businesses because we have the slight advantages over U.S. 

Reflection

                         Personally I do not think this going to turn out so peacefully, I remember the last time Harper promised something economically and ended up failing for it. He made matters worse by cutting jobs and then the recession came where workers were laid off. Then on top of that, came the HST which even put more pressure towards employees who were going to be laid off. However, if things do turn out the way Harper planned then U.S and Canada companies would both make more profit. Thing is, the article is quite misleading, the author say's "the problem is that U.S-based companies, unlike most foreign countries, are taxed by the International Revenue Service on their global income. So any profits they don't reinvent and try to repatriate are hit with higher U.S rate, not the Canadian rate." First of off, there're some U.S companies actually running businesses in Canada and earning income so, you're definitely going to get taxed by the Canadian rate. Damn the U.S are smart but, I really do prefer to lower the corporate tax rates to bring a little bit more... satisfaction to us.