Quote:
Originally Posted by CaramonLS
Isn't it really just a lot simpler than that?
A company is going to invest in a project if the project is going to be profitable.
Which is why I've never really understood the whole "supply side economics" argument in general. Whether taxes are low, or taxes are high, companies are going to invest where they can make money. Taxes only make the venture slightly less profitable.
When you've massive Multinational companies like you do down in the US, it doesn't matter if they're sitting on 2 billion or 3 billion - someone, somewhere in the world will give them the money to get the project started.
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Multi-nationals are not the greatest job creators. Small and medium businesses are. Multi-nationals are rarely effected by increases in taxes as they have far greater ability to weather them. Small and medium businesses are greatly effected by tax increases. 2-3% increase can kill any profit margin and or their competitiveness.
US businesses have smaller profit margins than Canadian ones. There is greater competition and less brand loyalty. Hence the reason Canadian businesses have a helluva time expanding into the US.