Corporate Taxes, Canadian Content, and Competition

The myth that Canada has really high corporate tax rates is still out there. Take a look at this. The image is from the Economist, who got their data from a report from the C.D. Howe Institute. Our corporate tax rates are lower than that of most Western countries; even the US.

Here's something that irked me when I saw it this morning. It's a Dart from the Toronto Star's "Darts and Laurels" section: "Buffalo Bills - For interference; the NFL team wants to play at least three games in Toronto in coming years, a move that could spell disaster for the Argos and the CFL."

Really? Is the Argos' fan base that fickle and disloyal that they'll abandon their team in droves when an NFL team shows up? And even if this happened, I don't see how it's a bad thing since it's a case of consumers choosing one product over another.

Protectionism exists everywhere, but the cultural protectionism that some Canadians engage in is often baffling. They're so convinced about the inferiority of our own product that they'll do everything to keep competition at bay. We apparently need to keep NFL teams away from our country because Canadians might like them better. We apparently need to keep American TV channels and radio stations away for the same reason. Please. I want my HBO, my MTV (with music videos), and a lot of football fans I know would love it if an NFL team played for Toronto. Let consumers decide. As crazy as it sounds to protectionists, competition might force people on our side of the border to improve the product they put out. And then, maybe more of us would choose Canadian content willingly. Which would you rather have? A strong Canadian product that not only competes but also wins? Or a weak product that constantly needs protection via antiquated laws?