[Flash Walken]

Originally Posted by CliffFletcher

So every constituency that's serious about attracting investment and economic activity should have a zero corporate tax rate?

Originally Posted by Enoch Root

Way to argue the extreme example.

No, to answer your question. But ignoring the competition, throwing your hands in the air, and just remaining completely un-competitive, is defeatist, short-sighted, and moronic.

Originally Posted by Enoch Root

Sure, I'll play along.

To your point that corporate tax rates were too low in Alberta, as evidenced by the budget deficit, is misleading at best. Low corporate taxes did not create this deficit. Low corporate taxes led to a competitive advantage in Alberta that led directly to higher per capita GDP (and thus a higher overall taxbase). Discussing why we now have a deficit is an automatic thread derailing.

As to your question - there are too many variables at play to answer in a paragraph or two. But one thing is certain: having them significantly higher than your competitors creates a disadvantage.

All corporate taxes are a) passed on to the consumer, or b) result in spending cuts elsewhere (usually payroll) or c) reduce profitability (when neither of the first two are possible). They are inconsistent between industries, and are inconsistent due to accounting practices and paper losses. They accomplish three things:

1) they are unfair and inconsistent between industries and even between companies in the same industry

2) they are a hidden tax that consumers aren't typically aware they are paying (which makes valuating their effectiveness - and even their scope - extremely difficult), and

3) they make the businesses in higher taxed districts unfairly less competitive than businesses in districts with lower corporate taxes.

So following those points through to their logical end suggests that the optimal corporate tax rate is zero.

Note: you asked me a question so I have answered it. But I am NOT going to get into an internet debate (yelling match) about it. I've answered and I'm out.

So then CliffFletcher was right in his characterization and you were just replying to him (and contradicting yourself in the process) to be a jerk?