Canadian Business Leaders Say Match US Taxes

by Mike Godfrey, Tax-News.com, Washington

05 February 2002

A recent poll of Canadian business leaders has shown that the vast majority believe that tying corporate and personal taxes to US levels would boost the Canadian dollar more effectively than continued pep talks from the Prime Minister.

Respondents to the Financial Post/COMPAS survey expressed displeasure with Jean Chretien's attempts to defend the loon, with one participant observing succintly that: 'The dollar needs deeds, not words'.

M. Chretien has previously expressed the belief that the low level of the Canadian dollar is a benefit for the country's economy, making it a more attractive location for exporters. However, at the World Economic Forum over the weekend, both the Prime Minister and Finance Minister Paul Martin lamented the currency's continued weakness.

'Our corporate taxes will be lower than in the US, [and] our corporate gains taxes are already lower,' Mr Martin commented on Sunday, adding that: 'We've had stronger economic growth than the US, and these factors should be reflected in our currency.'

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