My friends, love is better than anger. Hope is better than fear. Optimism is better than despair. So let us be loving, hopeful and optimistic. And we'll change the world. Jack Layton
Well... I guess that would ensure that those jobs fled to other jurisdictions...
I hear Sudan is lovely this time of year.
They're probably more thinking Bermuda -- or if they stay in Canada, Alberta.Tax-shopping is just one of those things. If you think they've got a point, you lower taxes. If you don't, you tell them to walk if they're so dissatisfied (with the implicit belief that they're bluffing).As we don't believe in indentured servitude, that's their right.
Companies such as banks don't locate in jurisdictions just because of their tax rates, however. They also have other needs, such as the presence of a highly educated workforce. That doesn't come without taxation of some kind.
It would be logical for provinces to give up corporate taxation to the federal government in return for more of the sales tax pie, as this would help eliminate some of the tax shopping - within Canada at least.It would also suit the division of responsibilities better since corporate tax revenue is quite volatile and provinces tend to have more of the social welfare responsibilities that need to be increased, not decreased, during a downturn.Aside from helping to mitigate the damage to provincial finances in recessions, just generally it would make budgeting easier if volatile corporate tax revenues were aggregated across the country so that booms in one area might offset declines in other areas.
That is an interesting suggestion, Declan.