The overall tax rate on new investment in the U.S. may fall to 18.6 per cent compared to 21.6 per cent in Canada.
As a share of GDP, business investment in Canada stands around 11 per cent.
When federal and provincial/local revenue shares are combined, the tax revenue-to-GDP ratio is close to 40 per cent.
The large gap in tax rates means there’s a strong incentive for those affected to respond.
One of the main sources of tax system complexity is the proliferation of credits, deductions and other special preferences.
The problems with the tax exemption for employer-paid health and dental benefits portend a larger problem with Canada’s tax system.
Tax reform key to increasing investment in British Columbia.
The main features of both the Bush plan and Trump plan encompass substantial cuts in personal and corporate income tax rates, reductions in the number of tax brackets and the elimination of specific exemptions and deductions.
A number of prominent Canadians, including Bank of Canada Governor Stephen Poloz, have raised concerns about the state of business start-ups and entrepreneurship in Canada. There is no question that entrepreneurship is critical to a well-functioning, prosperous economy.