Canada’s Burger King secret: Hold the taxes, hold the regulations.
John Fund
National Review
9/5/2014
The merger of U.S. hamburger giant Burger King with Tim Hortons, Canada’s favorite coffee shop, will create the world’s third largest fast-food company, with a total of 18,000 restaurants in over 100 countries. It is also a piercing wake-up call for the U.S., because the new company will make its global headquarters in Canada’s province of Ontario. That underscores what savvy businesses everywhere have learned — the U.S. is an increasingly less attractive place to do business. “Canada has quietly and politely become, well, more American than America,” says columnist Stephen Green.
Since 2003, more than 35 major U.S. companies have moved their headquarters and reincorporated overseas. Rather than rail against such “inversions,” as President Obama does, or call for an economic boycott, as Ohio’s Democratic senator Sherrod Brown does, we should figure out what is driving U.S. companies offshore. Here’s a clue: The U.S. now has the highest corporate tax rate of any industrialized country, and the Wall Street Journal reports that the Obama administration is “even now looking for ways it can unilaterally raise corporate taxes without going to Congress.”…
…Canada proves that a country can climb out of a deep fiscal hole within a remarkably small number of years and build a prosperous society even while it retains large welfare-state programs.
That is a lesson for U.S. Democrats, who, rather than rail against Burger King’s lack of economic patriotism, should learn how Canada has avoided America’s economic stagnation. It’s also a lesson for Republicans, who often lack the courage of their convictions in calling for genuine economic reform. Canada’s economic example — and the political success of Harper’s Conservatives in winning three elections in a row — should stiffen their spines.
Read the complete article at National Review Online.