Eagle Quest Properties

At the federal level, the corporate tax rate in Canada currently stands at 19%, down from 22.1% in 2007. The rate is scheduled to fall further, to 18% in 2010, 16.5% in 2011 and 15 per cent in 2012. Similar cuts are occurring at the provincial level. In Ontario, for example, the McGuinty government is planning to lower the general corporate income tax rate from 14% to 10% by 2013.

If these planned reductions are not cancelled, we should end up not only with more jobs and capital formation in the economy, but greater revenues for government programs. Lower tax rates don’t necessarily drain the public purse: the incentives to produce, invest and work can offset the lower rate and lead to greater inflows of tax dollars.

via The real stimulus | Columnists | Larry MacDonald | Canadian Business Online.

Tags: Canadian Economy, corporate tax rate, McGuinty, Ontario Real Estate, stimulus

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