Since the turn of the millennium, federal and provincial governments have reduced the tax burden on businesses from the highest in the OECD to the middle of the pack. [...] The cost to the economy of provincial taxes is even higher, because tax increases cause a much bigger erosion of the provincial tax base: $3.62 and $81.61 for corporate taxes in Quebec and Alberta respectively; $3.81 and $2.15 for personal taxes in Quebec and Ontario; and $1.33 and $1.31 for sales taxes in Quebec and Ontario.4 3 For a discussion of the marginal cost of taxation, see B. Dahlby, Mar [...] In Norway and the UK, the corporate income tax includes a supplementary tax paid by oil and gas producers for the extraction of non-renewable resources owned by the government. [...] In essence, the METR is the portion of capital-related taxes paid as a share of the pre-tax rate of return on capital for incremental investments (assuming that businesses invest until the after-tax return on capital equals the cost of financing capital). [...] The business tax burden on capital investments has fallen dramatically from one of the highest in the world to the middle of the pack.