By using this site, you agree to our Privacy Policy and our Terms of Use. Close

Forums - Politics - Is Canada top 10 for starting business (USA in top 10) due to low regulations, taxes and welfare?

dany612 said:

WHY WASN'T MEXICO ON THAT LIST?!!!!!! Or any other Latin American country?


Because the average amount of time it takes to open a buisness in Latin America is 54 days.  (Vs say Canada's 5)...

 

and the % of your income you need to put up is 37.3% (vs Canada's 0.4%).

 

So... waaaaay to many regulations and taxes/fees.



Around the Network

Oh here is an interesting fact too....

according to the numbers, the effective TOTAL tax rate a Canadian corporation pays on it's profits?

28.8%.

A US Corporation?

46.7%.

The average US Business nearly pays half of it's profits to the government according to that.

I'm hoping that's not the "effective" rate.



Kasz216 said:

Oh here is an interesting fact too....

according to the numbers, the effective TOTAL tax rate a Canadian corporation pays on it's profits?

28.8%.

A US Corporation?

46.7%.

The average US Business nearly pays half of it's profits to the government according to that.

I'm hoping that's not the "effective" rate.

Nope. The effective rate is much lower.  This is very likely due to tax breaks and structuring expenses to minimize tax.  An argument a free market/conservative would argue against targeted tax breaks is that it represents a form of centralized planning on the economy which gets in the way of a market naturally organizing itself in the most optimal way.



how the gell are we number 1 th world must suck around us. cause we aint that great



Yes.

As a business owner, there are a lot of things to consider. Its not just corporate taxes. It's regulations, the likelihood of government intervention, the intelligence of the population (smarter = better to hire), and taxes.

Not all US states are the same. That is why businesses, when they can, will attempt to do business in the most favorable state(s). Some are better than others (e.g. Texas over Illinois), but still, the federal government plays a huge part which makes the US a pretty bad place to be if your business can be located anywhere you'd like.



Back from the dead, I'm afraid.

Around the Network
dany612 said:

WHY WASN'T MEXICO ON THAT LIST?!!!!!! Or any other Latin American country?


Because no one in their right mind would do business on such a crappy continent. Go look at all business metrics in regards to Mexico, Central, and Latin America. Other than Africa, its the worst continent to do business on. Regulations are horrible, government intervention is high, and their practices are generally corrupt. You may have a few countries in the top 25 like Costa Rica, Panama or Chile, but that is about it.



Back from the dead, I'm afraid.

mrstickball said:
Yes.

As a business owner, there are a lot of things to consider. Its not just corporate taxes. It's regulations, the likelihood of government intervention, the intelligence of the population (smarter = better to hire), and taxes.

Not all US states are the same. That is why businesses, when they can, will attempt to do business in the most favorable state(s). Some are better than others (e.g. Texas over Illinois), but still, the federal government plays a huge part which makes the US a pretty bad place to be if your business can be located anywhere you'd like.

What I see has happened is that the issues involving business end up focusing mainly on one issue: tax rates.  Communities, that don't really seem to have anything to offer (or don't feel it) attempt to cut tax rates to lure business.  The end result of this is that there is a race to the bottom in funding government run services that help to support a community and sustain it.  It is a commoditization of things that has communities competing on price.  Even in this, I would question how effective enterprise zones would be to lure businesses, if they are in a place with high crime, drug use, and other undesirable elements.  All this, to me, still looks like artificialness places on top of systems that won't change things.  No matter how low taxes are, if there is an large population of uneducated people who can't even read or understand what it means to hold down a job, then they won't set up shop.  This happens.  In the Hudson Valley, for example, IBM sucked off so much labor, that manufacturers wouldn't relocate to the area, because of unemployment being too low.  Then IBM leaves and the area still has not recovered.  Tweaking tax rates won't fix this, nor even regulation.  Maybe there needs to be more occupying of the area by people who can make a difference and affect things.



richardhutnik said:
Kasz216 said:

Oh here is an interesting fact too....

according to the numbers, the effective TOTAL tax rate a Canadian corporation pays on it's profits?

28.8%.

A US Corporation?

46.7%.

The average US Business nearly pays half of it's profits to the government according to that.

I'm hoping that's not the "effective" rate.

Nope. The effective rate is much lower.  This is very likely due to tax breaks and structuring expenses to minimize tax.  An argument a free market/conservative would argue against targeted tax breaks is that it represents a form of centralized planning on the economy which gets in the way of a market naturally organizing itself in the most optimal way.

Who isn't argueing that?

Aside from which even if you consider effective tax rates.... Canada's is MUCH lower.

http://businessroundtable.org/uploads/studies-reports/downloads/Effective_Tax_Rate_Study.pdf

In general the rest of the world's approach seems to make corporate taxes a much smaller percentage of their revenue pie.



richardhutnik said:
mrstickball said:
Yes.

As a business owner, there are a lot of things to consider. Its not just corporate taxes. It's regulations, the likelihood of government intervention, the intelligence of the population (smarter = better to hire), and taxes.

Not all US states are the same. That is why businesses, when they can, will attempt to do business in the most favorable state(s). Some are better than others (e.g. Texas over Illinois), but still, the federal government plays a huge part which makes the US a pretty bad place to be if your business can be located anywhere you'd like.

What I see has happened is that the issues involving business end up focusing mainly on one issue: tax rates.  Communities, that don't really seem to have anything to offer (or don't feel it) attempt to cut tax rates to lure business.  The end result of this is that there is a race to the bottom in funding government run services that help to support a community and sustain it.  It is a commoditization of things that has communities competing on price.  Even in this, I would question how effective enterprise zones would be to lure businesses, if they are in a place with high crime, drug use, and other undesirable elements.  All this, to me, still looks like artificialness places on top of systems that won't change things.  No matter how low taxes are, if there is an large population of uneducated people who can't even read or understand what it means to hold down a job, then they won't set up shop.  This happens.  In the Hudson Valley, for example, IBM sucked off so much labor, that manufacturers wouldn't relocate to the area, because of unemployment being too low.  Then IBM leaves and the area still has not recovered.  Tweaking tax rates won't fix this, nor even regulation.  Maybe there needs to be more occupying of the area by people who can make a difference and affect things.

That is true, but again, working to ensure any competitive advantage is better than stimply maintaining status quo.

Where I live, we've seen all industry leave. We used to have about 5 factories in town, and now have 1. The city continually does all that they can to require massive regulations, no tax exemptions, and are notorious for being difficult to work with. The result is a 13% unemployment rate, when the entire county's rate outside of us is about 7%. Every city around us has secured major new businesses and industries, while our city dies.

All because we sit and do nothing. The best strategy is a combination of a good workforce, sane regulations, and low taxes, but even having one is better than none.



Back from the dead, I'm afraid.

mrstickball said:
richardhutnik said:
mrstickball said:
Yes.

As a business owner, there are a lot of things to consider. Its not just corporate taxes. It's regulations, the likelihood of government intervention, the intelligence of the population (smarter = better to hire), and taxes.

Not all US states are the same. That is why businesses, when they can, will attempt to do business in the most favorable state(s). Some are better than others (e.g. Texas over Illinois), but still, the federal government plays a huge part which makes the US a pretty bad place to be if your business can be located anywhere you'd like.

What I see has happened is that the issues involving business end up focusing mainly on one issue: tax rates.  Communities, that don't really seem to have anything to offer (or don't feel it) attempt to cut tax rates to lure business.  The end result of this is that there is a race to the bottom in funding government run services that help to support a community and sustain it.  It is a commoditization of things that has communities competing on price.  Even in this, I would question how effective enterprise zones would be to lure businesses, if they are in a place with high crime, drug use, and other undesirable elements.  All this, to me, still looks like artificialness places on top of systems that won't change things.  No matter how low taxes are, if there is an large population of uneducated people who can't even read or understand what it means to hold down a job, then they won't set up shop.  This happens.  In the Hudson Valley, for example, IBM sucked off so much labor, that manufacturers wouldn't relocate to the area, because of unemployment being too low.  Then IBM leaves and the area still has not recovered.  Tweaking tax rates won't fix this, nor even regulation.  Maybe there needs to be more occupying of the area by people who can make a difference and affect things.

That is true, but again, working to ensure any competitive advantage is better than stimply maintaining status quo.

Where I live, we've seen all industry leave. We used to have about 5 factories in town, and now have 1. The city continually does all that they can to require massive regulations, no tax exemptions, and are notorious for being difficult to work with. The result is a 13% unemployment rate, when the entire county's rate outside of us is about 7%. Every city around us has secured major new businesses and industries, while our city dies.

All because we sit and do nothing. The best strategy is a combination of a good workforce, sane regulations, and low taxes, but even having one is better than none.

As the problems of a community grow, and it falis to voluntarily address them, the end result is an increased strain that will begin to cause it to demand more and more taxes to offset things and pass more laws.  Politicians live and get elected by passing laws.  They don't have to try to enforce them, so it is easy to say they went somewhere and got legislation passed.  And again, as the problems pile up, more and more laws get passed, and more and more get ignored.