Everybody except the Trudeau government can see the obvious: If the U.S. is reducing taxes while we impose an escalating carbon tax and add regulations, our economy will become less and less competitive – costing us jobs and robbing us of potential prosperity.
Respected NY Post columnist Michael Goodwin has been discussing the growing evidence that the big tax cuts enacted in the U.S. are working:
“Each day brings announcements from companies ranging from Apple to Walmart that they are giving bonuses and pay hikes, adding new jobs and increasing their investments in America. Millions of workers will get the bonuses, most of which are for $1,000, and untold others will get new or higher-paying jobs. Most of those workers also will see their take-home pay increase because they will get personal income tax cuts and a doubling of the standard deduction. Those changes will become apparent in a week or so when the new lower rates are applied to payrolls.”
Adds Goodwin, “According to the Journal, profits for most firms in the S&P 500 could rise by 7 to 8 percent per share, which is why they will spend more. That spending will lead to higher earnings for other companies as part of what one analyst called a “virtuous cycle.” No one knows how far the expansion will go or how long it will last. But one thing is certain: Trump is the catalyst.”
While this is good news for workers and businesses in the U.S., it presents a serious challenge for Canada.
Unfortunately, the Trudeau government is reacting in the worst possible way: Imposing higher taxes and more regulations even as the U.S. moves in the opposite direction.
With carbon taxes increasing every month, the government is making everything more expensive, which hurts the spending power of Canadian consumers, and lowers the profitability of businesses.
The fact that the U.S. is right across the border, is home to the world’s largest economy, speaks English, and has a relatively similar business culture to Canada makes our competitive disadvantage even more dangerous, since it’s relatively easy for companies to move operations there.
We saw that just recently when Campbell’s announced that they were moving hundreds of manufacturing jobs from a Toronto plant to the U.S.
So, while the Trudeau government pushes an ideological agenda to put more and more power and wealth in the hands of politicians and bureaucrats, our neighbour to the south is making it easier for businesses to thrive, and is making sure that workers have bigger paycheques.
The longer this goes on, the more of our nation’s potential will be squandered.