Canada's Corporate Tax Cut Success: A Lesson for Americans
Retrieved on:
Tuesday, August 14, 2018
MONTREAL, Aug.14, 2018 /PRNewswire/ -In December 2017, President Donald Trump cut corporate tax rates from 35% to 21%, effective immediately.
Key Points:
- MONTREAL, Aug.14, 2018 /PRNewswire/ -In December 2017, President Donald Trump cut corporate tax rates from 35% to 21%, effective immediately.
- Between 2001 and 2012, successive Canadian governments of varying political stripes systematically reduced the corporate tax rate, which went from 28% in 2000 to 15% in 2012.
- As pointed out by American economist Arthur Laffer in the context of the 1980s Reagan tax cuts, high tax rates can discourage economic activity which, in turn, means less corporate income to tax.
- The Economic Note entitled "Canada's Corporate Tax Cut Success: A Lesson for Americans" was prepared by Mathieu Bdard and Adam Michel, respectively economist at the MEI and policy analyst at the Heritage Foundation.