Why are Canadian corporate taxes so low?

PricewaterhouseCoopers and the World Bank published their "Paying Taxes 2011" study.  Among other things it examines the total tax rate paid by a hypothetical flower pot corporation in 183 countries around the world.  Canada is in the top 10 countries in terms of how easy it is to pay taxes.

What is more striking is that Canada's Total Tax Rate is significantly lower than any of the other G8 countries.  In a global race to the bottom our corporate taxes are 17% lower than the US and half the rate as France.  At a time of high deficits, high unemployment and Canadians in need, how much more 'competitve' do we need to be?

  • Canada Rank: 37th   Total Tax Rate: 29.2% 
  • UK Rank:76th   Total Tax Rate:37.3%
  • US Rank:124th   Total Tax Rate:46.8%
  • Germany Rank:128th   Total Tax Rate:48.2%
  • Russia Rank:123rd   Total Tax Rate:48.5%
  • Japan Rank:130th   Total Tax Rate:48.6%
  • France Rank:163rd   Total Tax Rate:65.8%
  • Italy Rank:167th   Total Tax Rate:68.6%