Prime Minister Trudeau has stated unequivocally that he won’t reduce Canadian taxes to remain competitive.
tax reform
If you tax something less, you’ll likely get more of it.
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.