I wonder if this guy even looked at it.
Niels Veldhuis, senior economist at the Fraser Institute, called the corporate tax reductions a dramatic move by government. “This will drastically improve the investment incentives for not only businesses currently in the province but it will attract new business,” he said during an interview from Vancouver. “It sets New Brunswick apart even from B.C. and Alberta that currently have the lowest rate and it will dramatically attract business investment.”
I have pointed out on this blog in the past that your provincial corporate income tax rate is only a partial indicator of how much provincial corporate taxes you pay. It is based on both your operations in the province and your sales outside the province. For example, if you have a manufacturing operation in New Brunswick but most of your sales are in Ontario, you end up paying a large chuck of provincial tax in Ontario anyway.
Looking at this guy’s comments, it’s almost as if Fraser was at the table when the government made the decision. I wonder if the Libs have been consulting the Fraser Institute on tax policy?
I hate to restate the obvious but the tax cut this year will save the average business $150/year. Maybe at that level of ‘dramatic’ savings, the Fraser Institute will be compelled to move here.