Recent foreign takeovers of significant companies, including Alcan, Falconbridge, Inco, and Four Seasons Hotels, have grabbed Canadians’ attention, raising fresh worries over whether Canada is being “hollowed out.” Does the pace of foreign direct investment threaten our economic independence?

Canadian governments are undercutting progress in reducing corporate income and capital taxes with counter-productive policies that impose unequal tax burdens across assets and industries. The study highlights priorities for improving the tax system by reducing taxes on capital investment and...

Canada has made slow but steady progress in improving its tax system, yet the effective tax rate on new business investment remains 11th highest in the world.

Corporate tax with interest deductibility may reduce risk taking because entrepreneurs might decrease the amount of investment in risky projects with higher corporate tax rates. Unlike Stiglitz' "Corporation Tax", we allow for decreasing returns to scale and equity financing of capital. We show...

This paper discusses the implications of tax policy for the growth of entrepreneurship and small and medium-sized enterprises (SMEs). Some existing features of OECD tax systems are biased against entrepreneurs and small firms. For instance, double taxation of distributed corporate profits can...