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The federal government is facing growing calls to step up its crackdown on Canada’s large corporate tax loopholes.

The corporate tax rate in Canada is 15%, the highest in the world. As the United States continues to struggle with its own economic woes, Canada’s small businesses may be seeing little chance to escape.

In October, the Finance Department announced an overhaul meant to reduce the federal corporate tax rate to 17.5%, from 15% that currently stands at 28%. The changes will take effect when the budget is tabled on March 14. The government had already promised to increase the corporate tax rate in the 2013 federal budget.

The big question is: Will Ottawa take the corporate tax loophole idea one step further, and push it all the way?

The federal government is set to release its 2013 budget Monday, but the Liberal government may do so in a way not that different from when it unveiled the reforms.

Under the Liberals and most major federal political parties, the rate at which big businesses pay taxes is capped. The government cannot raise taxes on those companies, and has no choice but to pay less taxes.

The difference is that under the Conservatives, when the small business rate is capped, Canada’s small businesses do not have this option to raise taxes. Businesses that would like to raise taxes must choose to do so through a convoluted and convoluted tax system that leaves many out of pocket.

The changes announced in the 2013 budget are part of a broader package aimed at encouraging companies to build companies in Canada and keep investment and jobs in Canada. A second part in the package will also include more tax relief for those with high incomes.

The Conservatives announced changes to the tax code, changes that made the top corporate tax rate from 22% to 15%. It was a tough battle that ultimately failed when the Supreme Court said the changes would be constitutional.

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The Trudeau Liberals also have their own tough road ahead. The federal budget is due Wednesday, but the government has not ruled out the possibility of raising taxes in other areas as well.

But the bigger question is: Can the Canadian government really find a solution that will leave big businesses in Canada paying less for corporate taxes?

At some point, the debate will likely be about whether or not companies can pay the tax rate they must under current laws. But what isn’t on the table is a large decrease in business taxes

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