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2017 Tax Competitiveness Report

21 Feb 2018

Among the reforms the U. S. is bringing in are a drop in the federal corporate income tax rate from 35 per cent to 21 per cent, a ten-year window for full and partial expensing machinery and equipment, and other various rules that will incent companies to push profits into the U. S. and interest and other expenses into foreign jurisdictions. [...] Briefly, the effective tax rate, or tax wedge, is the portion of capital-related taxes paid as a share of the pre-tax rate of return on capital for marginal investments (on the assumption that businesses invest in capital until the after-tax return on capital is equal to the cost of financing capital). [...] In Canada, the corporate income tax rate was changed only at the provincial level – a one-point increase in British Columbia slated for 2018, a one-point reduction in Saskatchewan staged over 2017 and 2018, and a 0.1-point reduction to 11.8 per cent in Quebec as part of its five-year plan to reduce the corporate income tax rate to 11.5 per cent by 2020. [...] FIGURE 5 METRS BY COUNTRY IN THE ASIA-OCEANIA REGION 2017 India has the highest global METR of 52.1 per cent in large part due to a relatively high corporate income tax rate of 34.6 per cent, a capital tax, a real estate transfer tax and a general dividend distribution tax (included in the corporate income tax burden).6 Nonetheless, this is a significant reduction of 8.1 points from 2016 as a resu [...] The corporate income tax reform in the Tax Cuts and Jobs Act will result in higher GDP and wages in the United States.
government politics economics economy taxation income tax canada business business tax competitiveness debt depreciation investments earnings carbon tax taxes corporate income tax tax rates corporate tax business finance competition (companies) capital (economics) dividend deductions corporate tax in the united states the united states
Pages
43
Published in
Calgary, AB, CA

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