Quote:
Originally Posted by Fuzz
Presumably European countries don't have so many loopholes to escape paying taxes though. And taxes are so different in how they are applied, and the affects of different taxes and who pays them that you can't just post a few corporate tax rates and prove a point. Your analysis will need to be much deeper than that.
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The difference in tax system and available "loopholes" or tax avoidance mechanisms can definitely be a factor.
Another example, looking at Finland with a relatively low corporate taxation, they also have a relatively high union participation. This would lead to increased wages for workers and presumably lower profits on the companies. These increased wages are then taxed higher than in Canada but cash wise the corporation pays out of pocket to people who then pay the government taxes as opposed to a system that pays the worker less but then is forced to pay more to the government directly.
And then it would be harder than just comparing the wages in Finland to Canada to see if they make more, as it needs to be compared to corporation operating expenses in both countries and how much they pay for labour as a % of total expenditures.
To the point of having voters pay more taxes, if I told voters that corporations would be paying them 25% more than they do now, would they be opposed to paying 10% more to taxes to increase services?