By owning 70 per cent of their own oil production and taxing oil revenues at close to 80 per cent, Norway is now saving about $1 billion per week. The so-called "Calgary School" of economic thought would say this stunning socialist success story is impossible in the same way that scientists used to believe that bumblebees cannot fly.
Can tax activists and bankers agree on the future of tax havens?
Pour yourself a coffee and listen to the live proceedings of the House of Commons Finance Committee. The session starts at 845 am (eastern) on Thursday, February 14. This link is only good for the live proceedings.
For years, multinationals have publicly complained that getting rid of tax havens would lead to "double taxation" ... having to pay tax in two countries. Organizations like the OECD have been sympathetic and silent. Problem was, only activists were talking about the bigger problem of "double non-taxation." Paying tax nowhere. A practice that drains billions of tax dollars in national budgets including Canada's.
A new study, Fiscal Multipliers and the State of the Economy, by the International Monetary Fund has found that budget cuts hurt growth a lot, but tax increases have a neglible impact on economic growth. The study analyzed decades of data on the world’s major industrialized countries to estimate how changes in government spending or revenue affect economic output.
The New Brunswick Business Council is advocating the provincial government raise corporate income tax rates back to 2008 levels.
Susan Holt, the chief executive officer of the New Brunswick Business Council, said the provincial government should consider boosting the corporate tax rate from 10 per cent back to 13 per cent.
“[The business] council is comfortable with the idea of increasing the corporate income tax rate back to the previous levels under the guise of keeping it competitive,” Holt said.