In our view, the federal government should bring down the Canadian public debt burden faster; speed up the reduction in corporate income tax rates for all sectors of the economy, including the mining sector; lower personal income tax marginal tax rates further; eliminate capital taxes, which are among the most growth-constraining of all taxes; keep a tight rein on spending; and orient government spending towards growth-enhancing investments.

While Norway funds care of children across the board, while Tony Blair in England suggests a cash allotment to kids at birth, while the U.S. tax is based on family income, Canada tilts its financial support to value most spending time away from the kids.

In its analysis, the Commission will take account of the specific characteristics of the relevant national fiscal system and the fiscal incentives that already exist in the Member State, as well as the interplay between those incentives, taking into account the objectives set out in the Action Plan to strengthen the fight against tax fraud and evasion (40) and the two Commission Recommendations on aggressive tax planning (41) and on measures intended to encourage third countries to apply minimum standards of good governance in tax mat ...[+++]ters (42).

Rather, we identified the issue as a potential threat to the tax base, and we recommended in 2002 that Finance Canada obtain and analyze current information to reassess the tax revenue impact and the rationale for allowing foreign-owned Canadian corporations to deduct interest on borrowed funds related directly or indirectly to investment in foreign affiliates and for allowing tax-privileged entities in treaty countries to bring income into Canada tax free.

For example, as a result of Council Directive 2003/49/EC of 3 June 2003 on a common system of taxation applicable to interest and royalty payments made between associated companies of different Member States (26) (hereinafter the Cross-border Interest and Royalty Payments Directive) and Council Directive 2003/123/EC of 22 December 2003 amending Directive 90/435/EEC on the common system of taxation applicable in the case of parent companies and subsidiaries of different Member States (27) (hereinafter the Parents-Subsidiary Directive), the tax treatment of dividends, interests or royalties may differ according to whether the payment is ma ...[+++]de to a domestic or a foreign company.

Council Directive 90/434/EEC of 23 July 1990 on the common system of taxation applicable to mergers, divisions, partial divisions, transfers of assets and exchanges of shares concerning companies of different Member States and to the transfer of the registered office, of an SE or SCE, between Member States (3) has been substantially amended several times (4).