Paul Martin's Business Update August 26th, 2014

Only a couple of weeks after the word inversion found its way into our vocabulary, it is now the central topic of coffee row discussions as Burger King and Tim Horton’s considering merging with the new company being headquartered in Canada because we have a lower corporate tax rate than the US.

It’s another reminder that capital is mobile. Investors – everyone from blue chip players to little old ladies with pensions – are constantly searching for a better return. Tax considerations are a part of that thought process so companies seek out lower cost places for their headquarters. Alberta has long enjoyed the benefit of a lower tax regime which, over the years, has lured major corporate headquarters from Imperial Oil and Canadian Pacific to Viterra.

Fifteen years ago suggestions were floated in this province that personal income taxes should be capped at $1 million over a lifetime. If adopted, we’d probably see every major private equity transaction in the country take place here. It would be a windfall for Saskatchewan and we’d have to provide no public services in exchange.

http://martincharlton.ca/?p=765 #wetellyourstories #canada #saskatchewan #paulmartin