The Corporate Income Tax in Canada: Does Its Past Foretell Its Future?

36 Pages Posted: 11 Jan 2017

See all articles by Richard M. Bird

Richard M. Bird

affiliation not provided to SSRN

Thomas A. Wilson

University of Toronto - Department of Economics

Date Written: December 13, 2016

Abstract

Corporate tax reform has long been a contentious issue in Canada. Official commissions, academics and others have often proposed changes in the way we tax corporations. During the last 30 years, perhaps largely owing to concerns about international competitiveness, the corporate tax rate has been substantially reduced. Since revenues did not decline as a result, those concerned by increased inequality who believe that corporate taxes are paid mainly by the rich have suggested that corporate rates should be increased. Others, more persuaded by the increasing evidence that much of the burden of the corporate tax ultimately falls on workers and wages and that even to the extent it falls on capital the economic price paid in terms of reduced output and productivity for each corporate tax dollar collected is high have taken the opposite tack and argued that, if anything, corporate tax reform should be aimed at reducing even further the effective tax rate on corporate capital.

Keywords: Corporate Tax, Corporate Tax Rate, Effective Tax Rate

Suggested Citation

Bird, Richard Miller and Wilson, Thomas A., The Corporate Income Tax in Canada: Does Its Past Foretell Its Future? (December 13, 2016). SPP Research Papers, Volume 9, Issue 38, December 2016 , Rotman School of Management Working Paper No. 2896985, Available at SSRN: https://ssrn.com/abstract=2896985

Richard Miller Bird (Contact Author)

affiliation not provided to SSRN

No Address Available

Thomas A. Wilson

University of Toronto - Department of Economics ( email )

150 St. George Street
Toronto, Ontario M5S3G7
Canada

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