Quote:
Originally Posted by Azure
Its not a political limitation if the US is having problems recovering. Much of the talks have been about tax reform, or more specifically, closing the loopholes to create a level playing field for all businesses alike, not just the big ones like GE. Many people say small businesses are a driving point in the economy, and right now they're not driving anything. Canada has a much more simple tax code, with a lot less loopholes, and a lower overall corporate tax rate. When we talk about lowering the corporate tax rate, we're talking about lowering it from 17% to 16%. The US is talking about lowering it from 35% to roughly 23%.
You can possibly claim that such a change to the system is political. The change in the business community would be HUGE.
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Just to be clear. This is a political limitation born entirely of the institution of the American government.
Canada would not be having this problem right now if the situations were reversed. The Canadian executive would just raise the debt limit.
This is a political problem, not a market problem.
correction: Canada doesn't even have a debt limit to raise