4 ms·

The solution for Canada and the EU is simple but politically anathema: cut taxes A 2018 study shows tax increases significantly reduce innovation. A 1% increas

The solution for Canada and the EU is simple but politically anathema: cut taxes A 2018 study shows tax increases significantly reduce innovation. A 1% increase in the top marginal income tax rate leads to a 2% reduction in patents and inventors, while a similar increase in corporate taxes causes even larger declines. The study is quite rigorous too: https://www.maximum-progress.com/p/tax-cuts-and-innovation?r=2xrvu https://www.maximum-progress.com/p/tax-cuts-and-innovation?r...

dismalaf 2y ago
Pretty much. Canada also has many, many taxes that fly under the radar. The top federal corporate rate doesn't seem that high, until you realise there's also a provincial corporate tax. Then payroll tax that the employer pays on top of the employee's own payroll taxes that get deducted. Then employers are expected to pay for health insurance because, contrary to most foreigners' knowledge of Canada, our "free healthcare" doesn't actually cover anything beyond the absolute bare minimum, so most people also have health insurance. And then capital gains taxes affect investors and investing corporations and are one of many reasons startups can't access capital in Canada. Also nowadays there's so much immigration fraud involved in higher education in Canada, you can't really be confident in the credentials of recent graduates. But if you start a firm in the US, you have access to a vast amount of venture capital, far lower taxes, a much more business friendly environment, a larger clientele, more educated labour and the US government filters out the immigration/education scams for you.