Quote:
Originally Posted by CliffFletcher
That’s the narrative, but are they?
The countries with the most robust public services in the world have quite moderate corporate tax rates.
Germany 30
Netherlands 26
Canada 26
Denmark 22
Norway 22
Sweden 20
Finland 20
https://tradingeconomics.com/country...ntinent=europe
Northern European governments fund their public education, health care, and pensions through 20-25 per cent sales tax and higher income taxes at every income level than their Canadian counterparts pay. That’s the model proven to deliver a more equitable social democratic society. The barrier to implementing it in Canada isn’t corporations and billionaires. It’s Canadian voters who will turf any candidate who even proposes that kind of taxation.
The notion that we can have the kind of public services we want and expect on the taxes average Canadians pay is a fantasy. |
You're ignoring payroll taxes/social security contributions, which are largely what funds the healthcare systems in those countries.
So sure, Swedish corporations pay ~20% tax on their profits which is lower than Canada. But they also pay 31.42% of all labor costs towards social security vs. Canada's mandatory employee related costs which are more like 10-11%.
Assuming 25% of gross revenue is labor costs and a 10% net margins, you'd get the following in Sweden:
~8% of revenue towards social security
2% of revenue to corporate tax
TOTAL = ~10% of revenue paid as taxes/social security
vs. Canada:
~3% of revenue paid as CPP, EI, vacation, etc.
2.6% of revenue to corporate tax
TOTAL = 5.6% of revenue paid as taxes/social security
So Swedish corporations clearly contribute more to the social welfare system than Canadian ones do. And the same holds true for most of those countries.