Liberalism's 'dirty secret' - It doesn't always work

[Remiel]

How exactly do you indirectly own shares? Do you mean through pension plans, or did you really mean stakes?

Anyway, while technically true, I think you are still deflecting a little bit, geoffrey. " Taxing corporations " is the only way to tax the foreign shareholders in those corporations, is it not? And aren't there a whole slew of tricks that someone with a skilled accountant can use to avoid declaring dividends as income?

[madmax]

We shouldn't have any taxes for corporations.

The company I have been involved with has earned between 80 million and 70 million/year throughout the last five years. This company has made profits during these five years.

Payment in taxes $35000/year.

I really don't believe that giving this final $35,000 is going to make a difference, then again I don't believe $35,000 is making a huge difference in community services either.

[geoffrey]

How exactly do you indirectly own shares? Do you mean through pension plans, or did you really mean stakes?

Anyway, while technically true, I think you are still deflecting a little bit, geoffrey. " Taxing corporations " is the only way to tax the foreign shareholders in those corporations, is it not? And aren't there a whole slew of tricks that someone with a skilled accountant can use to avoid declaring dividends as income?

Umm... I'd need to see what your referring to... I'm not sure where my comments are in context, looking back.

Nearly everyone owns shares through whatever, mutuals, pensions, incentive programs, whatever.

A corporation only works and makes money for it's shareholders, so it makes sense to tax the shareholders and not the corporation. Taxing the corporation hides the tax from the public and makes it seem like a good thing, when in fact, they are taking money out of your wealth.

The company I have been involved with has earned between 80 million and 70 million/year throughout the last five years. This company has made profits during these five years.

Payment in taxes $35000/year.

I really don't believe that giving this final $35,000 is going to make a difference, then again I don't believe $35,000 is making a huge difference in community services either.

It's not the 70-80mm companies that are the issue (though that is a tasty little niche in the tax area). It's enterprise businesses... we'll say around 10mm in revenues with 10-30 employees. That will drive the economy, and we are failing them right now. It's even worse when small businesses, say 5-10 employees once they are out of the small-business tax rates. The owners essientially get taxed twice.

Corporate taxes aren't the only way to get taxes from foreigners, and actually I'd argue they are the least effective as they are the easiest avoided. Taxing all dividends and capital gains leaving the country would be more effective, give Canadians more money yet still encourage foreign investment through lower operational taxes in Canada. Essientially I think withholding taxes are more effective then business taxes in dealing with foreign ownership.

[madmax]

It's even worse when small businesses, say 5-10 employees once they are out of the small-business tax rates. The owners essientially get taxed twice.

Corporate taxes aren't the only way to get taxes from foreigners, and actually I'd argue they are the least effective as they are the easiest avoided. Taxing all dividends and capital gains leaving the country would be more effective, give Canadians more money yet still encourage foreign investment through lower operational taxes in Canada. Essientially I think withholding taxes are more effective then business taxes in dealing with foreign ownership.

Well, now you have caught my attention. I understand your point with regards to small business.

What you are suggesting in your second paragraphs is like an export tax, only focused on Capital, if I understand you correctly. In the resources and manufacturing, economists often argue that export taxes are bad. Although many countries with oil use just that option.

But, that aside, I believe this idea of, don't take your money out of the country, invest it here and it will not be taxed is interesting to say the least. Am I understanding you correctly?

Obviously, if you understand what is going on today, many foreign companies are buying Canadian Branch plants and Canadian Companies, taking the technology, profits, then moving both towards China and/or the USA.

Now, is this a platform of the CPC, or just a Platform of some Albertan Nationalist?