Corporate Tax Cuts = Profit to US Treasury
Statistics Canada figures indicate that US corporations had Canadian operating profits of $43.1 billion in 2007. Given that some operating profits are used to cover non-operating expenses like interest, US corporations were repatriating (rather than reinvesting) the lion’s share of what was left.Multiplying $30.4 billion by 35% indicates American tax obligations of $10.6 billion. But the IRS reports credits for Canadian taxes of only $8.3 billion. Therefore, the implied transfer of corporate tax revenue from Canada to the US treasury is $2.3 billion.
In other words, it may be a small sum compared to trillion dollar deficits, but we’re paying for the American military industrial complex with our tax cuts.
Way to go Stevie!
And Jack, Jack, Jack: support Stevie’s new budget and the NDP will be sure to slip into oblivion.