The Canadian government released its first budget under Prime Minister Paul Martin which includes significant future spending commitments. However, some members of Canada's business community are worried that the budget does not do enough to maintain the country's competitiveness in the global economy through tax incentives and other measures. While the budget was received positively by some groups, others such as the Canadian Manufacturers & Exporters Association believe the government's competitiveness agenda is not being implemented quickly enough. There is debate around whether the tax reductions and other measures in the budget will be sufficient to attract investment and keep Canada competitive internationally over the long term.
In the US …
> US federal R&E credit lapses again – will it be renewed?
> Presidential candidates acknowledge need for a better federal-level program
> California, Wisconsin and Indiana increase their state-level tax credits
In Canada …
> Ottawa hints at “SR&ED Overhaul” in 2008 budget
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
In the US …
> US federal R&E credit lapses again – will it be renewed?
> Presidential candidates acknowledge need for a better federal-level program
> California, Wisconsin and Indiana increase their state-level tax credits
In Canada …
> Ottawa hints at “SR&ED Overhaul” in 2008 budget
What does the new Tax Cuts and Jobs Act mean for you? Our January Investment Insights explores the key points of the most significant overhaul of the tax system since '86, reviewing the new tax brackets, deductions and exemptions, and the effects on the economy.
State of the States: An Analysis of the 2015 Governors’ AddressesALEC
State of the States is an in-depth study of governors’ tax, budget and pension reform proposals. The report gives insight into which states proposed economic reform to protect taxpayers and which states took steps toward increasing state revenue. This report also features graphics that reveal regional trends in proposed reforms while also highlighting which states have a newly elected governor.
November 2016 caused a big shift in U.S. ideology and it also is responsible for a flurry of tax changes. With his Tax Cuts and Jobs Act of 2017, Donald Trump made changes to tax rules for Americans living at home and abroad. A big change for those living abroad are the repatriation tax rules.
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
Coronavirus Financial Assistance ProgramsMark Gottlieb
[Attorneys of All Disciplines] Under The Caption - "Must Be Shared" - Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are also eligible. Call us if you need further assistance.
[퐀퐭퐭퐨퐫퐧퐞퐲퐬 퐨퐟 퐀퐥퐥 퐃퐢퐬퐜퐢퐩퐥퐢퐧퐞퐬] 퐔퐧퐝퐞퐫 퐓퐡퐞 퐂퐚퐩퐭퐢퐨퐧 - "퐌퐮퐬퐭 퐁퐞 퐒퐡퐚퐫퐞퐝"- Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are eligible. Call us if you need further assistance.
Mercer Capital's Value Matters™ | Issue 1, 2022 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
The 4Life Loyalty Program allows distributors and customers win LPS redeemable for free products to be sent through auto shipment, dispatched from the 1st to the 20th of each month.
CTP’s Threat Update series is a weekly update and assessment of the al Qaeda network. The al Qaeda network update includes detailed assessments of al Qaeda’s affiliates in Yemen, the Horn of Africa, and the Maghreb and Sahel. CTP’s Iran team follows developments on the internal politics, nuclear negotiations, and regional conflicts closely.
Below are the top three takeaways from the week:
1. Yemen’s warring factions continued efforts to secure gains on the ground despite Yemeni officials’ announcement of a one- or two-week ceasefire in the country ahead of the next round of UN-led political negotiations. Al Houthi-Saleh forces counter-attacked in western Taiz city, which was recently seized by coalition-backed forces, and Yemeni army units loyal to President Abdu Rabbu Mansour Hadi began an offensive in southern Ma’rib and northwestern Shabwah governorates. The al Houthis reportedly agreed to the full implementation of UN Security Council Resolution 2216, which calls for al Houthi forces to disarm and withdraw from seized territory. The timing and phasing of the al Houthi withdrawal has been a stumbling block for previous attempts at a negotiated settlement.
2. Al Shabaab’s announcement of a new fighting unit bearing the name of its late Kenyan leader, Aboud Rogo, indicates the group’s sustained prioritization of its Kenyan operations. A similar unit named for al Shabaab’s late emir, Abu Zubayr, is prosecuting a campaign of mass-casualty attacks against African Union Mission in Somalia bases in Somalia. This group was probably behind the recent attack against a Somali National Army base outside of Mogadishu that reportedly killed over 70 soldiers. It is likely that the new unit will pursue a similar campaign in Kenya.
3. The al Qaeda in the Islamic Maghreb (AQIM) attack against the In Salah gas plant in central Algeria was probably part of AQIM’s effort to compete with the growing influence of the Islamic State of Iraq and al Sham (ISIS) in the Maghreb region. AQIM described the March 18 rocket attack as a message for the Algerian regime and to Western companies. AQIM likened the attack to the January 2013 In Amenas hostage crisis, but the more recent attack appeared to be less sophisticated and may not have been planned by veteran al Qaeda operative Mokhtar Belmokhtar. AQIM has increased its media production and is directly countering ISIS’s message in the region as ISIS expands in Libya.
November 2016 caused a big shift in U.S. ideology and it also is responsible for a flurry of tax changes. With his Tax Cuts and Jobs Act of 2017, Donald Trump made changes to tax rules for Americans living at home and abroad. A big change for those living abroad are the repatriation tax rules.
Thanks to Ulster Savings Bank for hosting this event, guest speaker Jonathan Gudema of Planned Giving Advisors and to all of our participants for joining us to learn more about the impact of the new tax law on charitable giving.
Coronavirus Financial Assistance ProgramsMark Gottlieb
[Attorneys of All Disciplines] Under The Caption - "Must Be Shared" - Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are also eligible. Call us if you need further assistance.
[퐀퐭퐭퐨퐫퐧퐞퐲퐬 퐨퐟 퐀퐥퐥 퐃퐢퐬퐜퐢퐩퐥퐢퐧퐞퐬] 퐔퐧퐝퐞퐫 퐓퐡퐞 퐂퐚퐩퐭퐢퐨퐧 - "퐌퐮퐬퐭 퐁퐞 퐒퐡퐚퐫퐞퐝"- Download our PowerPoint Presentation discussing the various Coronavirus Financial Assistance Programs. Many of you are eligible. Call us if you need further assistance.
Mercer Capital's Value Matters™ | Issue 1, 2022 Mercer Capital
Mercer Capital's Value Matters™, published 6 times per year, addresses gift & estate tax, ESOP, buy-sell agreement, and transaction advisory topics of interest to estate planners and other professional advisors to business.
The 4Life Loyalty Program allows distributors and customers win LPS redeemable for free products to be sent through auto shipment, dispatched from the 1st to the 20th of each month.
CTP’s Threat Update series is a weekly update and assessment of the al Qaeda network. The al Qaeda network update includes detailed assessments of al Qaeda’s affiliates in Yemen, the Horn of Africa, and the Maghreb and Sahel. CTP’s Iran team follows developments on the internal politics, nuclear negotiations, and regional conflicts closely.
Below are the top three takeaways from the week:
1. Yemen’s warring factions continued efforts to secure gains on the ground despite Yemeni officials’ announcement of a one- or two-week ceasefire in the country ahead of the next round of UN-led political negotiations. Al Houthi-Saleh forces counter-attacked in western Taiz city, which was recently seized by coalition-backed forces, and Yemeni army units loyal to President Abdu Rabbu Mansour Hadi began an offensive in southern Ma’rib and northwestern Shabwah governorates. The al Houthis reportedly agreed to the full implementation of UN Security Council Resolution 2216, which calls for al Houthi forces to disarm and withdraw from seized territory. The timing and phasing of the al Houthi withdrawal has been a stumbling block for previous attempts at a negotiated settlement.
2. Al Shabaab’s announcement of a new fighting unit bearing the name of its late Kenyan leader, Aboud Rogo, indicates the group’s sustained prioritization of its Kenyan operations. A similar unit named for al Shabaab’s late emir, Abu Zubayr, is prosecuting a campaign of mass-casualty attacks against African Union Mission in Somalia bases in Somalia. This group was probably behind the recent attack against a Somali National Army base outside of Mogadishu that reportedly killed over 70 soldiers. It is likely that the new unit will pursue a similar campaign in Kenya.
3. The al Qaeda in the Islamic Maghreb (AQIM) attack against the In Salah gas plant in central Algeria was probably part of AQIM’s effort to compete with the growing influence of the Islamic State of Iraq and al Sham (ISIS) in the Maghreb region. AQIM described the March 18 rocket attack as a message for the Algerian regime and to Western companies. AQIM likened the attack to the January 2013 In Amenas hostage crisis, but the more recent attack appeared to be less sophisticated and may not have been planned by veteran al Qaeda operative Mokhtar Belmokhtar. AQIM has increased its media production and is directly countering ISIS’s message in the region as ISIS expands in Libya.
This deck was presented at IRCE 2013 in Chicago. Learn about the top 10 SEO tactics for gaining buy in and getting SEO work done. Give us a call to learn more.
VMworld 2015: How To Troubleshoot Using vRealize Operations Manager (Deep Liv...VMworld
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This is presentation discusses job quality in Canada as well as comparing Canada job quality with other countries like Germany, Sweden, Denmark, Spain and Greece.
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Ontario and U.S. Programs offer different approaches to help fund innovation in medical technology
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companies in the biotech / medical-device sectors.
Insero & Co. CPAs presents an overview of New York State and U.S. Tax reform, the economy and current trends, and what they mean for you. Whether you represent a large corporation or a small business, this update will help you get up to speed on current rules and regulations and plan for changes that may be on the horizon.
No Strings Attached – 10% Cash Refund Benefit to all Companies
Most Canadian provinces have their own R&D tax credit schemes that augment the federal SR&ED benefit. Despite its booming economy, Alberta has been one of the few Canadian provinces – along with tiny Prince Edward Island – that didn't.
1. Budget for business?
fDi Editor | 12/04/2005 12:00 am | Commenton this article
nd
Will Canada’s latestbudgetkeep up the country’s momentum for FDI? David Clarke reports on reaction to the new
government’s firstcrack of the fiscal whip.
The first budgetof the Canadian prime minister Paul Martin’s Liberal governmentfeatures a hostof bold future
spending commitments and,to appease the other parties,something for basicallyeveryone in the interim.But how
much it offers foreign investors is open to debate and some members ofCanada’s business communityare worried
that the proposed budgetdoes notgo far enough to keep the country competitive.
“The Canadian governmentdoes notunderstand thatwe mustcompete in a globallycompetitive environment;our tax
incentive circumstance is a big negative for our future economic prosperity,” says Bill Lawson,an associate professor
at the Eric Sprott School of Business atOttawa’s Carleton University. “We will fall further and further behind,far
below our country’s potential.”
The Canadian Manufacturers & Exporters Association (CME) did not appear impressed with the budget. “After
building up expectations that the federal governmentwould address the challenges facing Canadian industry,the few
measures introduced in this year’s budgetfall far shortof what is necessaryto boostinvestment,production,jobs or
export performance,” says Jayson Myers, CME’s senior vice-presidentand chiefeconomist.
The budgethad a stormy reception in parliamentbuthas gone to the third reading and is expected to pass.
The governmenthas a lot going for it. As a resultof Canada’s seven consecutive surpluses,the country has moved
from having the second worstdebt-to-GDP ratio in the G7 to having the best.And a 2004 KPMG study of
international business costs in 11 countries showed Canada’s costs were the lowest.
Canada has continued to attract more than its fair share of global greenfield FDI.In the past10 years, it has attracted
about6% of the global total, far more than its share in the world economy, which is less than 2%.
The government’s strong fiscal position and lower debtburden have meantmore resources are available to spend on
pressing problems like healthcare,defence and Kyoto commitments,while maintaining the country’s corporate tax
advantage relative to the US. Once the measures in the 2005 budgetare fully in place in 2008,the corporate surtax –
originallyintroduced to help fight the federal deficit – will be eliminated and the general corporate income taxrate will
be reduced to 19% from 21%.
Spending growth
The reaction from the business communitywas generallyfavourable.“The biggestconcern for business leaders is
the overall rate of spending growth,” says David Stewart-Patterson,executive vice-presidentofthe Canadian Council
of Chief Executives (CCCE), which represents the heads ofabout150 leading domestic companies.“Much of the
new spending is going to meetvery importantpriorities,from improving healthcare to strengthening our armed forces.
But overall programme spending is up by 12% this year and has grown 44% over the pastfive years.”
However, questions remain aboutwhether the governmentwill able to afford everything that it has promised.Some
business leaders are fretting over the sustainabilityof its stated commitments to spending on social programmes.
And, ironically,the strength of the Canadian dollar presents risks to the country’s economic health.
“I’ve said very clearly that the value of the dollar is one of the budget’s downside risks,” Canada’s finance minister,
Ralph Goodale,has stated.
The CCCE, though,is slightlyconsoled by the finance minister’s “continued bedrock commitmentto balanced
budgets,prudence in fiscal forecasting and the dedication ofunused contingencyfunds to debt reduction”,says Mr
Stewart-Patterson.
Competitive position
But the key question,at leastin terms of FDI, is whether the budgetgoes far enough to maintain Canada’s global
competitiveness.
2. Mr Stewart-Patterson says he is glad that the governmentseems to have recognised the importance ofa competitive
tax regime,and in particular of keeping Canadian corporate income taxrates significantlybelow those in the US in
order to attract more investmentand jobs.But he tempers this byadding:“These improvements,however,offer little
comfortin the shortterm to Canadian exporters thatare trying to cope with the rapid rise of the Canadian dollar over
the pasttwo years and which need to make major investments now to stay competitive and continue growing from a
Canadian base.”
According to the CME, the government’s competitiveness agenda is taking too long to implement.“Bottom line:this is
an election budget.There are a lot of back-end measures thatwill not take effect for years,” says Mr Myers.
“As a business association,we were advocating a five-year tax strategy, but that does notmean that the government
has to wait five years for the measures to take effect.”
The CME believes that, in addition to the tax breaks,some very limited tax and spending measures will be ofbenefit
to industry. “But the government’s failure to accelerate depreciation allowances for manufacturing equipmentis a
major disappointment,” Mr Myers says.“It is clear from this budgetthat, while the governmentis willing to spend
heavily on one hand,and use the tax system for environmental policypurposes on the other, it justdoesn’tgetit
when it comes to building a competitive investmentenvironmentin Canada.”
Defence argument
The DepartmentofFinance, not surprisingly,defends the budget.“The governmenthas taken significantaction in
recent years to reduce taxes for Canadian families and businesses,” says a DepartmentofFinance spokesperson in
response to Mr Myers’ critique.“Tax reductions have been part of a balanced approach thatincludes reducing debt
and investing in key programmes for the benefitof Canadians.Therefore,tax reductions have to be sustainable and
fiscallyresponsible.”
The $100bn Five-Year Tax Reduction Plan introduced in 2000 reduced federal personal income taxes by 21% on
average, and by 27% for families with children.It also reduced the general corporate tax rate to 21% from 28% which,
the DepartmentofFinance says, levelled the playing field for Canada’s service sector and created a tax advantage
for investmentin Canada.
“Budget2005 builds on the government’s strong record ofsustainable,responsible taxreductions with further
personal and business tax reductions,” the spokesperson insists.
Pensions boost
In a surprise move,Canada has abolished limits on how Canadians investtheir retirementsavings,opening a whole
new ballpark for many pension funds to contribute to Canada’s stock ofoutwards investment.
The federal budget’s scrapping ofthe 30% limiton foreign content – for pension funds and individuals alike – is “a
victory that, quite frankly, we were not expecting”, says John Murray, vice-presidentofregulation and corporate
affairs for the InvestmentFunds Institute of Canada,a Toronto-based industryassociation.“We had hoped the
governmentmightreduce the restrictions incrementally.We are very pleased with the results,” he says.
According to the budget,the rationale for the government’s move is:“As Canadian markets have grown and matured
since the early 1990s and become more integrated with global capital markets,access to capital for Canadian
companies has improved substantially.”
The limit,setat 10% in 1971,rose to 20% in the 1990s,then to 30% in 2001.Investors who exceeded those limits
were penalised with a 1% per-month penalty tax.
The clear winners are Canada’s pension funds,which until now have been crimped by the relatively small domestic
marketin which they had to operate. The Canadian stock marketaccounts for only 3% of world stock market
capitalisation.
The Conservative party has come out swinging over the budget,even threatening to trigger a snap election in the
spring.With the Liberal governmentin a minority,a vote againstthe budgetby the Conservatives would countas a
vote of no confidence,which would require another election to be held.Opposition leader Stephen Harper later
backed down from this position.Whatever the fate of the budget,the government’s business competitiveness agenda
and tax regime are unlikelyto see any large-scale changes anytime soon.
Some members ofthe business communitythink that is a shame.Carleton University’s Professor Lawson has some
unambiguous advice for the government:“The message is notgetting through:lower taxes to stimulate the private
sector’s wealth,creating capacity, resulting ultimatelyin more tax revenue. Stop with the short-term politicking and
adoptpolicies for the long term.”
3. R&D INITIATIVES
Canada’s proposed budgetprovides $810m in strategic investments in ideas and enabling technologies over the next
five years. These include:
r five years for the three federal granting councils:the Canadian Institutes ofHealth Research,the Natural Scienc es and Engineering
Council ofCanada,and the Social Sciences and Humanities Research Council ofCanada.
funding to universities and research hospitals for the indirectcosts offederally sponsored research,bringing th e total to $260m a year
m starting in 2005-2006.
r five years for world-leading particle physics research atthe Tri-University Meson Facility (TRIUMF) science facility in British
he Canadian Academies ofScience to provide independentexpert assessments ofthe science underlying keyissues.
Genome Canada in supportof breakthrough genomics research.
recarn,which specialises in advanced robotics and artificial intelligence.
These initiatives build on the $11bn added by the governmentof Canada for university-based research since 1998.
This article is sourced fromfDiMagazine