U.S. can learn from Canada's lower taxes

By 2013, Canada's effective tax rate on capital will be 18.4%, less than one half of our 39% in 2005. We will have the most tax-competitive regime in the G7, which is far better than six years ago, when we had the least competitive regime. These corporate tax reductions have boosted investment. One important study showed that a 10% reduction in the tax-inclusive cost of capital led to a 7% increase in capital investment. Without doubt, the final stage of corporate tax reductions in Canada is a win-win for both the private and public sectors. There is no trade-off between...