This report looks at how corporate income taxes have changed over the past two decades, what incentives they provide for domestic and international investment, and whether changes in the international economy have helped shape these reforms.

The current push for tax reform seems to be coming from corporate America. This is quite different than the circumstances surrounding tax reform in 1986, the last time the United States enacted comprehensive tax reform. At that time, upper-income individuals were investing in a variety of tax...

This paper provides an empirical estimation of the effects of provincial corporate tax rates on economic growth using annual panel data from Canadian provinces over the period 1981-2016. Our empirical approach enables us to investigate the long-run relationship between provincial tax rates and...

Shortly after its election in May 2019, the new Alberta government began fulfilling its promise to reduce the provincial corporate income tax (CIT) rate. The rate cut began in July 2019, when the government dropped the CIT rate from 12 to 11 per cent. The rate is scheduled to decline to 10 per...

This communiqué is based on the following paper: The Costliest Tax of All: Raising Revenue Through Corporate Tax Hikes can be Counter-Productive for the Provinces by Ergete Ferede and Bev Dahlby. Raising taxes can come at a high cost. Not just to taxpayers, of course, but to the economy. Every...

This paper analyzes the implications of alterative risk assumptions for estimates of the distorting effects of the corporate tax in Canada. These distortions are decomposed into three broad categories: inter-asset distortions; inter-industry distortions; and inter-temporal distortions. Estimates...

Canada is one of the few countries in the world where an intra-country formula allocation (FA) mechanism plays an important role in the taxation of corporate income by sub national governments, that is provinces. This paper presents and analyses information prepared for its authors by CRA on the...