Moving to Canada for lower taxes

Discussion in 'Economics' started by fhl, Jul 6, 2009.

  1. fhl


    Moving to Canada for Lower Taxes

    In a recent op-ed, it was noted that Canada’s industrial heartland of Ontario is cutting its federal-provincial corporate tax rate to 25%, or 15 percentage points lower than the average U.S. federal-state rate of 40%.

    Marginal tax rates affect economic behavior. Thus I was not surprised when I read in a Mark Steyn column that retailer Tim Hortons (essentially Canada’s Starbucks) is packing up its U.S. headquarters and moving to Ontario. The company operates 3,457 retail outlets on both sides of the border.
  2. No. Second Cup is Canada's Starbucks. Tim Hortons is Canada's Dunkin' Donuts.

    After reading your political commentary, I must ask that you kindly remain in the US. I'd hate to think you were just one province away.
  3. Gee.... What if American Government became "tax and business friendly"? Wouldn't some foreign companies move operations to the USA... and EMPLOY AMERICAN WORKERS??

    Instead, they're adopting policies which will not only preclude businesses from moving here, but will DRIVE OFF TO FOREIGN SHORES anybody and any business who can swing it.

  4. Bob111


    good move Canada! soon Ontario will be flooded with immigrants from US. time to buy some properties over there. US gov know,what they are doing ,when they close "free" entry to Canada. next step-shut the borders USSR style.
  5. Been to the Detroit-Windsor border lately? Or even the Sarnia crossing? Takes forever with the new passport rules, etc.
  6. fhl


  7. TGregg


    LOL, yeah, and what if aliens landed and shared their advanced technology with us?

    Unfortunately it is tough to say which is more likely.
  8. Is that the same as saying, "when monkeys fly out of your butt"?
  9. companies already locate their HQ in tax-friendly and/or business-friendly locales (like Delaware)

    And outsourcing, decentralization is rapidly. Call centers/accountants in Philippines, engineering and programming in India, manufacturing in China. Companies like LG (TVs) have outsourced almost everything. It gives them less unions, more flexibility, ability to get competitive bids for many company functions.

    LG is the wave of the future, not uprooting all your staff to move into another country. Saving a few tax dollars and losing your key employees is not as much a savings as it seems - otherwise everyone would move to Manila. And moving is very expensive. The desparate employees will stay with you. Your key employees who don't WANT to move to another company will go to your competitors.

    "relocating your HQ" means less every day. Many companies are spread throughout the world, and interact via chat, emails, and live telephone meetings. They outsource their IT, payroll and many other things.
    #10     Jul 6, 2009