Erin Weir, an economist with the United Steelworkers, writes in to the Toronto Star to quibble slightly with the apparent joy expended on Tim Hortons’ return to Canada.
By reorganizing itself as a Canadian corporation for tax purposes, Tim Hortons will no longer pay American tax on its global profits. But it will pay no additional Canadian tax on its Canadian profits. There is no indication of Tim Hortons relocating any facilities or jobs to Canada.
This corporate reclassification appears to be the Prime Minister’s best or only example of what deep corporate tax cuts have achieved. If so, it suggests that these cuts provide essentially no public benefit.