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The treasury transfer effect

2 Nov 2009

Profits repatriated from other Commentators of all stripes once acknowledged countries are subject to the U. S. federal corporate this strong rationale for keeping Canada’s corporate tax rate minus a credit for taxes already paid to tax rate at least equal to the U. S. federal rate. [...] If our combined federal-provincial In May 2009, President Barack Obama unveiled corporate tax rate equals or exceeds the U. S. federal proposals to strengthen U. S. taxation of profits corporate tax rate, then Canadian tax payments will generated abroad by American corporations.1 This provide a large enough credit to fully satisfy the U. S. initiative not only provides a general contrast to tax ob [...] Japanese corporations For these corporations, the only effect of deep account for a further portion of Canada’s corporate federal and provincial corporate tax cuts will be to profits.7 Therefore, most of the profits generated in transfer some of their tax payments from Canadian Canada by foreign corporations are insensitive to governments to the U. S. treasury. [...] The Apparent Consensus The Treasury Transfer Effect The last two Alternative Federal Budgets and other CCPA publications have cited the treasury transfer The U. S. has always taxed its corporations on a effect as an argument against corporate tax cuts.8 The worldwide basis. [...] When American corporations Canadian Labour Congress has made the same point in repatriate profits generated in other countries, they a letter to the editor, as well as in presentations to the are taxed at the American federal rate of 35% minus a House of Commons Finance Committee.9 credit for foreign corporate tax payments.
government politics economy taxation finance canada corporations dividends government policy investments law money payments tax government budget taxes corporate income tax corporate tax federal budget business finance economy, business and finance provinces and territories of canada government finances provincial governments taxed profit (accounting) foreign tax credits

Authors

Weir, Erin

Pages
8
Published in
Canada

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