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Paul Ryan does not understand how taxes work in <a href=''>Canada|Climbing Chalk</a> Canada

So, if you have a good year, you’re paying a 44.6 percent federal tax rate,” Ryan said. “Guess what the Canadians would be taxing themselves? Same kind of company — 15 percent.” The pitch comes as Ryan readies to fight for a vision of tax reform that he’s had trouble getting off the ground, even as Republicans control both levels of Congress and the White House. The Canadian corporate tax rate, like America’s, is complicated and full of loopholes and deductions. And, much like America, there is two levels of corporate tax — one on the federal level, and one on the provincial or territorial level. Technically, the federal corporate income tax rate is 38 percent — but thanks to a series of deductions and abatements, the actual level is 10.5 percent for small businesses and 15 percent for regular companies. Ryan was using a calculation of the top federal American rate, with some other taxes included, against the federal Canadian rate. That’s not quite accurate — as companies in Canada are nearly-evenly taxed by both Ottawa and the provinces. And he’s been using that incorrect number in his policy documents and his speeches for weeks.  (Correction July 7, 6:35pm: This story originally read that Ryan was using the combined American tax rate. spokesperson for Ryan’s office points out that the speaker’s American rate of 44.6 percent is not, in fact, the combined American rate. It appears Ryan is using a 2013 analysis from the Republican chairman of the Ways and Means committee that calculated the top possible tax rate for a small business based on a variety of factors. The speaker’s other point — that a Canadian company would be taxed just 15 percent — remains at issue.) An American company taxed at 44.6% here would only be taxed at 15% in Canada. How do we expect our businesses to compete globally?

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