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I always had a notion form the media that it was way more expensive for companies to set up business in Canada than in the U.S..
However, this week Burger King announced it is in talks with Tim Horton's to merge and move the company from the U.S. to Canada so it will pay less corporate tax.
How come all I hear is that businesses are fleeing Canada to the States because taxes too high up here etc... ? Healthcare cost too high?
I understand for labour intensive business that the cost of labour might be a little less in the U.S. but the Canadian dollar is lower than the U.S. dollar so that kind of mitigates much of that. I also understand that in manufacturing you want to build you product close to where the market is (if you have not outsourced to China or india etc...) to save on transport cost, but why are all service based companies, tech companies and the like currently headquartered in the U.S. not moving their operations to Canada?
People have such a negative view of Canada?
However, this week Burger King announced it is in talks with Tim Horton's to merge and move the company from the U.S. to Canada so it will pay less corporate tax.
How come all I hear is that businesses are fleeing Canada to the States because taxes too high up here etc... ? Healthcare cost too high?
I understand for labour intensive business that the cost of labour might be a little less in the U.S. but the Canadian dollar is lower than the U.S. dollar so that kind of mitigates much of that. I also understand that in manufacturing you want to build you product close to where the market is (if you have not outsourced to China or india etc...) to save on transport cost, but why are all service based companies, tech companies and the like currently headquartered in the U.S. not moving their operations to Canada?
People have such a negative view of Canada?
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