At a time when we require a cosmic struggle just to NOT raise taxes, our neighbor to the north is cutting taxes on corporations to a rate almost half of ours. In the Wall Street Journal’s Canada Slashes Business Levies Phred Dvorak (December 30, 2010) writes:

The latest tax cut is Canada’s fourth in as many years and will lower its federal corporate income-tax rate from the current 18% to less than half of the U.S.’s 35%, at a time when economists and government officials fret that high U.S. taxes could be discouraging investment south of the border.

In 2012, Canada plans to cut its corporate taxes further, to 15%, bringing combined provincial and federal taxes to about 25%, from a combined average of 42.6% in 2000.

The Canadian government says those cuts will give Canada the lowest overall tax rate on business investment in the Group of Seven Industrialized Nations when deductions and credits are factored in.

It is also worth noting that Canada did not suspend prudent lending standards to achieve political aims and its economy and real estate sector, while still hit, did not suffer nearly as bad as ours. They seem to lack the class warfare mentality that seeks to pay for reckless government spending by punishing those that create wealth and jobs. While our president pays lip service to creating jobs they seem to know both how and who creates employment.

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