The Quebec government provides a tax holidaya temporary reduction in the corporate tax rate for several yearsfor
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The Quebec government provides a tax holiday—a temporary reduction in the corporate tax rate for several years—for small- and medium-sized manufacturing companies investing in remote regions. Discuss how this policy might distort the allocation of resources between longlived and short-lived capital investments if depreciation allowances cannot be deferred to the period after the holiday ends.
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The tax holiday biases company investments toward shorterlived forms of capital To see the reason fi...View the full answer
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Related Book For
Public Finance In Canada
ISBN: 9781259030772
5th Canadian Edition
Authors: Harvey S. Rosen, Ted Gayer, Jean-Francois Wen, Tracy Snoddon
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