Comments on The Burd Report: The HST - what do we know about it?

And I do believe that dividends are awarded a tax ...

2009-11-21T13:48:33.344-05:00

And I do believe that dividends are awarded a tax credit thereby diluting the amount of tax paid on dividends, and not all dividends are taxed some are expensable.

Anon, it is you who does not understand the differ...

2009-11-21T11:57:56.136-05:00

Anon, it is you who does not understand the difference between a corporation paying corporate tax and a share holder paying on their individual profit from that corporation. Not the same thing.

those who complain about low corporste tsxes simpl...

2009-11-20T23:37:45.594-05:00

those who complain about low corporste tsxes simply don't understand the system. when you take a dividend out of a corporation it is taxed as INCOME with a credit for the corporate tax paid. if the corp income is under 500k the total tax rate is the same as for any other income about 45%.

Here is some comment on one effect of reducing cor...

2009-11-18T13:48:46.146-05:00

Here is some comment on one effect of reducing corporate taxes in Canada:

Canadian corporate tax cuts hand $4-6 billion to U.S. treasury: study

November 3, 2009 Press Release

OTTAWA—Planned federal and provincial corporate tax cuts will transfer $4-6 billion of annual revenue from Canadian governments to the U.S. treasury, concludes a study released today by the Canadian Centre for Policy Alternatives (CCPA).

The study, by economist and CCPA Research Associate Erin Weir, explains that the U.S. taxes its corporations on a worldwide basis. When an American corporation repatriates profits from Canada to the U.S., it pays the 35% American federal corporate tax rate minus a credit for taxes already paid in Canada. Given a Canadian corporate tax rate below 35%, American corporations will have to pay the rate difference back to Washington.

“For American corporations, the only effect of deep federal and provincial corporate tax cuts will be to transfer some of their tax payments from Canadian governments to the U.S. treasury,” observes Weir. “Canadian governments can ill afford such revenue losses, particularly given concerns about the prospect of ongoing budget deficits.”

Furthermore, cutting corporate taxes is unlikely to attract investment or jobs.

“If American corporations must pay the U.S. federal tax rate on their Canadian profits, a lower Canadian tax rate will not make their existing Canadian assets more lucrative, let alone induce them to invest more in Canada,” Weir says.

The report recommends that Canada enact a combined federal-provincial tax rate of at least 35% to retain revenue that will otherwise be shifted to the U.S. treasury. Canadian corporate taxes would still be lower than the combined U.S. rate because all but three states apply additional corporate taxes over and above the 35% American federal rate.

The rebate through 3 payments of $1,000 is not onl...

2009-11-18T09:10:22.478-05:00

The rebate through 3 payments of $1,000 is not only expected to cover the additional tax paid in the first 18 months. Rather it is to cover that plus a sort of down payment on future HST outlay. And yes it is 3 payments of $300 for an individual.

So, there is not expected to be $900 in extra taxes per individual or $3,000 per family in the 1st 18 months.

How much extra these families and individuals has not been projected anywhere I can find.

Corporate taxes are already too low in Ontario, th...

2009-11-17T18:04:28.011-05:00

Corporate taxes are already too low in Ontario, thanks to the Harris tories. By cutting them further, the Province is buying their support for the HST too.

Where is Manfred to give us his own first hand take on this as a business owner? I'd be curious to see what he says.

To the first anonymous: the promised HST rebates a...

2009-11-17T17:29:54.825-05:00

To the first anonymous: the promised HST rebates are $1000 per couple/family earning under 160k, or $300 for a single person earning under 80k.

Harmonizing the taxes makes sense and I agree with it generally. But the Ontario government has turned it into a massive tax grab because they'll be collecting tax on many things they never did before.

When the HST was introduced in the Atlantic provinces, their governments actually reduced the provincial tax rate a couple percentage points to ensure it remained revenue neutral. Meanwhile our government buys us off with a one-time kickback, like Deb O said, so that we'll pay more in the longrun.

Unfortunately I don't know enough about business taxes to comment intelligently on that topic.

The Province is giving money away to Business for ...

2009-11-17T16:04:55.643-05:00

The Province is giving money away to Business for the simple reason that they need their support to bully this HST through the legislature. The Chamber of Commerce in Ontario wields a very big stick, after all; much bigger than any individual taxpayer.

For us, we get the bribe of rebate cheques to shut us up. Many of us won't take the time or don't have the math skills to figure out we are getting screwed, again.

This move was inevitable, it was just a matter of time.

So, if my family actually gets the promised 3 paym...

2009-11-17T14:30:13.375-05:00

So, if my family actually gets the promised 3 payments of $1,000 each, how much additional tax will that offset? In other words, how much will the additional hit of HST accrue in 18 months? Are there estimates out there? This seems like a lot: $3,000 in additional tax in 18 months