How Brad Wall's 'Plan For Growth' Will Grow Washington's Treasury With No Benefit For Saskatchewan
"When an American company like Mosaic repatriates profits from Saskatchewan to the US, it pays the 35% American federal corporate tax rate minus a credit for corporate taxes paid in Canada. The combined federal-Saskatchewan rate is currently 27% (12% + 15%), well below the US threshold. Cutting Saskatchewan corporate taxes further below that threshold would force US companies operating in Saskatchewan to pay more American tax, shifting revenue from our provincial treasury to Washington with no benefit for Saskatchewan."
Economist - Candidate for Leader of the Sask NDP
Saskatchewan Premier Brad Wall released his 'Plan For Growth' at a recent lunch meeting of the Saskatchewan Chamber of Commerce to much corporate fanfare.
In the plan, Wall promises an upcoming cut to the province's corporate tax rate of 12% to 10%. The proposed cut carries no stipulation that these savings must be used to create employment in the province. Premier Wall adheres to simplistic right wing ideology which assumes that the corporate tax savings will be used to create jobs in the province.
Wall's boosters are simply gushing praise for the plan .... without acknowledging some of the obvious flaws it contains:
-Murray Mandryk, Political columnist - Regina Leader-Post
-Globe & Mail