Finance Minister Jim Flaherty announced Sunday the government will scrap 70 tariff items to save Canadian businesses about $32 million a year.
“This builds on our government’s commitment in Budget 2010 to make Canada a tariff-free zone for industrial manufacturers,” Flaherty said in a statement. “By lowering costs for these businesses, we are enhancing their ability to compete in domestic and foreign markets and helping them invest and create jobs here at home.”
Various sectors — including food processing, apparel, electrical equipment and furniture — will benefit from the move.
The Conservatives had previously eliminated the duty on imported machinery and equipment in an attempt to make Canada a tariff-free zone for industrial manufacturers by 2015.
The Tories say that since 2009 they have eliminated more than 1,800 tariff items and have provided more than $435 million in annual tariff relief to Canadian businesses.
According to the leftist CTV news, Canada also has lower corporate taxes.
The study released Wednesday by KPMG International found Canada’s corporate tax rate has dropped by more than 16 per cent over the last 11 years.
Canadian companies are actually paying less than their American counterparts.
On average, Canadian companies pay 28 per cent of their income in federal and provincial tax, well below the 40 per cent paid by American companies.
But Canada’s corporate tax rate is higher than Europe’s 20 per cent and the OECD average of 26 per cent.
Canadian corporate taxes fell three per cent in 2011, from 31 per cent in 2010.
“Canada’s corporate tax rate falls around the middle of the pack among the OECD countries,” said Elio Luongo, KPMG’s Canadian Managing Partner for Tax.
“But Canada’s general corporate tax rate is anticipated to continue to fall in 2012, when the federal tax rate will be 15 per cent, versus 16.5 per cent in 2011.”
I’ve written before about how Democrats oppose the job creation that would occur if the United States developed energy in Alaska, the Gulf of Mexico and the Ohio shale. Additionally, Obama has also opposed building the Keystone XL pipeline, which would have created 20,000 jobs paid for by a Canadian company. But Canada has no problems with developing their own energy resources, because their government operates independently of the environmentalist left.
As world leaders gather in South Africa to discuss climate change this week and next, Canada’s environment minister says he plans to defend Alberta’s oilsands and is willing to argue they are an “ethical” and reliable energy source.
Heading into the 17th Conference of the Parties meeting, Environment Minister Peter Kent says he will not sign on to any deals that mandate some countries reduce greenhouse gas emissions while others don’t — as his government argues was the case under the Kyoto Protocol. He is also unequivocal in his defence of northern Alberta’s bitumen production, a position he expects will be supported by Alberta Environment Minister Diana McQueen when she joins him at the end of the week.
“We still need to — and the industry needs to and our provincial partners need to — be aggressive in ensuring international friends and neighbours and customers recognize Alberta’s heavy oil is no different from heavy oil produced in any number of other countries which don’t receive nearly the negative attention or criticism,” he says. “It is a legitimate resource.”
Kent has made headlines in the last year by arguing that Alberta’s oil is “ethical.”
“We talk about this on quite a regular basis,” Kent says. “I think it’s important we correct where we find … misunderstanding, misinformation or deliberate ignorance to demonize, to criticize and to attempt … to create a boycott.”
In January, on his second day as environment minister, Kent referred to Alberta’s oilsands product as “ethical oil” during an interview with a newspaper reporter.
Reports immediately linked Kent’s comments to the title of conservative activist Ezra Levant’s recent book, Ethical Oil: The Case for Canada’s Oil Sands.
The book essentially compares Canada’s human rights record to those of other oil-producing countries, and argues Canada’s “ethical oil” is preferable to “conflict oil” produced in countries with poor human rights records, such as Sudan, Venezuela, Saudi Arabia or Iran. The argument removes environmental issues, such as greenhouse gas emissions, from the equation, though Levant notes Alberta’s data on environmental issues is more transparent than information shared by other countries.
So in total I’ve presented three reasons why the Canadian economy is booming, while the American economy is stuck in neutral. Obama opposes free trade, lower corporate taxes and domestic energy production. When you elect a socialist lawyer, you get a Greece/Spain economy. When you elect a capitalist economist, you get Canada’s booming economy, and consequently, a lower unemployment rate. Recall that our recession began exactly when we elected Nancy Pelosi to the House leadership and Harry Reid to the Senate leadership in 2007. Democrats wreck economies. There is no reason why America cannot be more prosperous than Canada, but we have to not elect an abject buffoons as our leaders.