Canada Embraces Lower Corporate Taxes, More Domestic Energy
Bloomberg offers analysis on Canada’s elections Monday, which gave the Conservatives and Prime Minister Stephen Harper a majority government, concluding, “Harper Wins Clear Path to Tax, Spending Cuts in Canada Vote“:
May 3 (Bloomberg) — Canadian Prime Minister Stephen Harper won a majority of seats in Parliament for the first time, giving his Conservative Party a mandate to bolster the economic recovery with additional tax cuts and erase the country’s deficit with curbs on government spending….
One outcome of Harper’s victory is that planned corporate income tax cuts will move ahead. Canada reduced the federal rate by 1.5 percentage points to 16.5 percent on Jan. 1, and it will fall to 15 percent in 2012 under legislation passed in 2007….
Both the NDP and the Liberals had pledged to raise corporate taxes to fund new social spending.
A Harper majority also means the country’s oil companies will have an advocate in Ottawa, after the Liberals and the NDP pledged to eliminate tax breaks and subsidies for the industry.
Canada is relying on business investment to help lead the recovery. Energy companies have been a main driver of spending, allowing the country to grow in the fourth quarter at a faster pace than any other Group of Seven country. Canada also has the lowest deficit in the G-7 and commodity sales have made its currency the strongest in the group over the past two years
That’s a strong policy agenda for economic growth. We hope Congress and the White House are paying attention.
Elswhere , Canadian Mark Steyn is rather rude about the losers.