The misconception as to what Canadians pay in taxes starts at the top. In Tuesday night’s Presidential Debate Mitt Romney stated “Canada’s tax rate on companies is now 15 percent. Ours is 35 percent. So if you’re starting a business, where would you rather start it?”
What Romney does not look at is the overall cost of doing business in the U.S. vs other countries, Canada included. It is also why the average American has such a misconception as Canada’s “free healthcare” and the fact that we are taxed and pay considerably higher costs for virtually every product and service we receive. Let’s look at a typical Ontario based company…and what they pay.
Federal Tax Rate – 15%
Ontario Tax Rate – 14%
CPP – 4.95%
E.I. – $1,175/employee (EI premium payable is 1.4 times the EI premium payable by each employee)
Workers Compensation – Average $3.00/mth/employee
Benefits – Average $200/employee/month
Add to this 13% HST on all equipment, fixtures, services, insurance, rent etc.
Higher transportation, vehicle, shipping, electricity, gas, water and rent and other costs.
We don’t have any “Buy Canadian” incentives even at the Federal Government level, in fact if your not the lowest bidder there is a good chance you wont get any business. Fact is that most Canadian made goods are cheaper in the U.S. and it not just the cost of booze and cars. It’s virtually every product Finally let’s not forget how compassionate and supportive our banking system is to small business.