Comment and analysis on all things Charlotte

Province of Ontario now creating more jobs than the entire U.S.

The Canadian province of Ontario gained over 40,000 jobs in June, more than double the number of jobs created in the entire United States that month.

Something has gone terribly, horribly wrong here. To screw up so badly that a single Canadian province is now clocking the entire US in job creation, Washington would have to deliberately sabotage the country. I’m beginning to think that is exactly what they are doing.

Ontario has dramatically slashed taxes for corporations and individuals, which works every time it is tried. While the US languishes with what will soon be the highest corporate tax rates in the developed world at 35 percent, Canada has been slashing theirs dramatically. Companies can now do business there for a combined rate of 20% to 25%, and those rates are scheduled to continue to drop.

Of course, American companies don’t pay the full rate due to write offs and tax shelters, but having rates that high forces them to hide their money rather than investing it.

Since the new tax plan was introduced a year ago, 74,000 new jobs have been created in Ontario. Ontario’s real GDP increased by 2.8 per cent in 2010, and RBC‘s recent forecast predicts 2011 will bring the province’s highest growth rate since 2000. The unemployment rate has declined to 7.9 per cent.

As Jeff Taylor would remind us if he were writing this piece, the Charlotte region has shed over 30,000 jobs since the beginning of the recession.

The other problem? A friend of my fathers who runs a mid-size business recently told him that the biggest problem he now faces is the boatload of regulations that the Democrats passed before they lost control of the House. He says those are even more damaging than the recession and make hiring and expanding extremely difficult.

We have a long, long way to go in this country and, it often seems, no one in charge who is interested in helping us get there.

 

3 Responses to “Province of Ontario now creating more jobs than the entire U.S.”

  • Jul
    29
    2011

    Regulations and compliance with them increases the hurdle to starting or expanding businesses. Simplify the tax code, get the government out of picking winners but first stop layering on regulations.

    My neighborhood has just gotten in comliance with the ADA I guess. They tore up perfectly good curbing at intersections to put in comparable curbing with a rubber/metal rumble strip.

    Was this the best use of scarce capital in my neighborhood? No.

    Multiply compliance to this level in each business, compliance with health care regulations yet being crafted, finance regulations just being crafted, and capital has to wait on strike until the rules of the game are set.

    Perhaps the rules now are so onerous that they preclude manufacturing and industrial business in America.

    A graded approach to removing regulations to make US businesses more competitive is necessary. You can relax and remove regulation that doesn’t appreciably improve the environment or impact worker safety.

    But you need workers and you need to produce as well.

  • Aug
    01
    2011

    This is a serious question….do wheel chair users REALLY like those rumble strips? Are they a real necessity, or did someone come up with an idea that seemed like a good idea but really wasn’t….?

  • Aug
    01
    2011

    Oh….are the rumble strips actually for the blind, to designate the transition from sidewalk to street?

    Or maybe the strips are for blind wheel chair users….that’s likely it…..just curious…..

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