Low corporate taxes not a major draw of foreign investment, report finds

The federal government may be deluding itself in thinking lower corporate taxes will attract significantly more foreign investment into Canada, a new paper says.

The Conference Board of Canada's analysis of empirical studies world-wide shows firms are attracted more by good public infrastructure, an educated workforce and transparent regulations than tax breaks.

The paper's author, business professor Steven Globerman of Western Washington University in Washington state, says tax cuts could actually discourage investment if they weaken governments' ability to spend in areas that increase productivity.

Wednesday, November 3, 2010 - 9:46am