Ralph Goodale on February 23rd:
To sustain the growth which drives our economy and enables us to meet the needs of our society, we need to ensure a competitive corporate tax system, too, one that will allow us to attract the kind of investment that stimulates growth and creates well paying jobs for Canadian workers. Jobs is what this is all about.
Over the past few years we have given our Canadian businesses a modest but strategic tax rate advantage vis-à-vis the United States. Over that same period, the Canadian private sector generated more than one million new jobs. However, recent tax reductions in the United States will gradually erode our Canadian margin.
To maintain it, this budget proposes to reduce the statutory corporate income rate by two percentage points, from 21% to 19% by 2010.