The United States has already been eliminating job-killing regulations. Once their tax cuts kick in, Canadian businesses will face serious problems competing with our southern neighbour.
The U.S. Senate has approved a massive tax cut bill that will slash the U.S. business tax rate from 35% to 20%, and cut taxes for tens of millions of families.
The legislation will now go to a conference with the House of Representatives, and a final version of the tax cut bill may be signed into law by U.S. President Donald Trump by Christmas.
Biggest Tax Bill and Tax Cuts in history just passed in the Senate. Now these great Republicans will be going for final passage. Thank you to House and Senate Republicans for your hard work and commitment!
— Donald J. Trump (@realDonaldTrump) December 2, 2017
Meanwhile, the U.S. has already been slashing many job-killing regulations, taking the shackles off their energy industry and removing bureaucracy.
Unfortunately, while the U.S. is moving towards a more competitive business environment, Canada is going the opposite way.
While our federal business tax is still lower than the 20% upcoming rate in the U.S., the combined federal-provincial rate will put many Canadian businesses at a disadvantage.
Additionally, the imposition of carbon taxes add even more of a burden to every activity undertaken by businesses, which is yet another disadvantage for us.
Finally, the Trudeau government and far-left provincial governments have been adding huge amounts of bureaucracy and regulations that make it even tougher for businesses to compete.
All of that was a problem even while our business tax rate was so much lower than the U.S. rate.
But now, with massive tax cuts in the U.S. closer to becoming law, it will be tougher and tougher for businesses in Canada to compete, and the temptation for some to head south will be overwhelming.
This will mean lost jobs and lost wealth for our country and our citizens.
Of course, the government could easily reduce our impending competitive disadvantage if they slashed regulations and ended the forced imposition of a carbon tax.
Yet, there is no sign of that happening. Instead, we face an unstable economy wracked with record household debt, increased government spending, and government actions that will certainly cripple our ability to compete in the years to come.