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As Alberta has dreams of courting a big-5 bank I’d like to point something out:
In the late 70s Ontario increased corporate tax rate above those in Quebec. Also in the late 70s, RBC and BMO moved their corporate headquarters from Montreal to Toronto.
What gives?
In the late 70s Ontario increased corporate tax rate above those in Quebec. Also in the late 70s, RBC and BMO moved their corporate headquarters from Montreal to Toronto.
What gives?
Well, as with most things in life it's complicated. But a big part of the answer is: separatism.
By 1980 there was a 2 point corporate tax advantage to having your business in Quebec over Ontario. But companies went THE OTHER WAY.
By 1980 there was a 2 point corporate tax advantage to having your business in Quebec over Ontario. But companies went THE OTHER WAY.
Something to keep in mind as we flirt with an Alberta Pension Plan, Alberta Provincial Police and all other forms of firewall and grievance against Canada. Big institutions that cherish stability don't want to HQ their operations in a place one vote away from being offshore.
"But," I can hear you say, "that's reductionist. Toronto had also emerged as the financial capital."
Well, that's right! Still is! To recap: in the 1970s Toronto was the financial capital with higher taxes than an increasingly separatist Quebec. Banks moved TO Toronto, not away.
Well, that's right! Still is! To recap: in the 1970s Toronto was the financial capital with higher taxes than an increasingly separatist Quebec. Banks moved TO Toronto, not away.
