Canadian Industry Stung by Tax Burden

Summary


"But Canada is competing with many other countries for internationally mobile capital, and even with the measures announced in 2006, the tax burden on investment in manufacturing is higher in Canada than in almost all other smaller developed countries," it said.

"A relatively high tax burden on business investment will reduce the amount of capital per worker in firms operating in Canada, and this will put downward pressure on relative levels of productivity and wages in Canada," it warned.

"The disincentive arises from ... graduated tax rates, which results in the incremental return from education being taxed at a higher rate," it said.

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Canadian Industry Stung by Tax Burden

By Eric Beauchesne

OTTAWA -- Only weeks away from the March 19 federal budget, the Finance Department released a study Thursday indicating Canadian manufacturers en...

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