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Statistics Canada confirms the benefits of lower corporate income tax rates

Published by Stephanie Brooks on March 06, 2013

The federal and provincial corporate income tax rate reductions that have taken place in recent years have had a positive result on government revenues, according to the latest update on Financial and Taxation and Statistics for Enterprises published today by Statistics Canada.  

During the period 2007-2012, corporate taxes paid by all enterprises in Canada increased by roughly 10 per cent in Canada,  from 53.4 billion to 58.7 billion, despite the 2008-09 economic downturn and the low level of many industry sectors during these two years.

According to CME President and CEO Jayson Myers, “lower corporate income taxes attract more investments and therefore have a positive result on government revenues, at all levels of government. This is good news for our economy, and I am confident our tax environment will attract more investments in the years to come.”

These numbers confirm CME’s predictions published in our 2011 paper, Economic Impact of Corporate Tax Rate Reduction, in which CME predicted the net fiscal impact of the CIT rate reduction for all levels of governments would be $7.5 billion between 2007 and 2012.

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