Quote:
Originally Posted by robbie111
What if corporations were given incentive (a slightly lower Corporate tax rate) to reinvest profits in Alberta and those choosing not to would face a slightly higher Corporate tax rate. Would keep the economy moving with reinvestment.
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This idea, as with most tax issues, would be way too hard to implement in practice. Ask 10 people to define "reinvest profits in Alberta" and you'll get 10 different answers.
Something that many people may not know about corporate tax, is that the lower rates are available to only active corporations, earning profits through business. Passive corporations are taxed at a much higher rate upfront (though they get the money back once distributed to shareholders). The low corporate rate already encourages business profits in Alberta (and Canada).