In nine developed countries including Canada, immigrants are more than 20 per cent more likely to be self-employed than the native population.
When taxes on investment returns are very high, the negative consequences, compounded over time, can be dramatic.
B.C.’s overall tax rate on new investment is 27.7 per cent—the highest rate in Canada.
News that Burger King and Tim Horton’s are merging and that the new company will be headquartered in Canada has taken the business and political world by storm. U.S. politicians and left-of-centre groups denounced the transaction as “tax dodging” and warned of a public backlash against the well-known burger chain.
One item sorely missing from Finance Minister Mike de Jongs recent provincial budget was a plan to make BCs business taxes more competitive and attractive for investment.
April 1st is an important day for British Columbians and were not referring to the Easter long weekend. On that day BC officially scraps the HST and in one fell swoop restores the old Provincial Sales Tax system.
But moving back to the PST will cause harm to the provincial economy and BC families will lose out on the increased prosperity and jobs that the HST would have encouraged. Since our province will be poorer with the PST, it falls on our political leaders to take action to lessen the impact.
When the PST rears its ugly head on April 1, 2013, British Columbias tax competitiveness will be dealt a major blow as the cost of the investing in the province increases dramatically. Unfortunately, the well-being of BC families will be negatively affected in many ways none more important than the adverse impact the PST will have on investment in machinery, equipment, and technology the backbone of a healthy economy.