As Impact Of U.S. Tax Cuts Grows, Canada’s Competitive Position Worsens By The Day

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.

Spencer Fernando

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chris malmstrom
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You would think that Morneau would have some sort of grasp on this…you know, being a financial wizard and all, BUT, it’s all about the elites, taxpayers are only a revenue source. Trudoh is pushing Canada to be a socialist state…the rich and the poor, eliminate the middle class.

Jen
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Jen

Canadians search to find the best price for the item whether it is food clothing or other necessities that would suit their pocket.
Same for businesses and companies, they too look for places (countries) that suit their business profit so they can improve and expand without having mountains of regulations and taxes.

Clive Edwards
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Clive Edwards

Being a bum boy for the Yankee globalists, I suspect Trudeau’s taxes are the stick to Trump’s tax cut carrot. If Trump could make China less competitive he would. With Canada it is easy. Besides, China can defend itself against Yankee aggression – Canada can’t, because our military is a branch of the Yankee military, who only make war on those innocents the Yanks tell us to. Remember the Arrow? Many Canadians do. Fewer remember the Yank “Bomarc” missiles we were told to take when the Arrow went down due to people like Trudeau in government at the time.

dee
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dee

as long as the liberals (socialists) are in power canada will never get a head. 1.7 growth is no reason to raise interest rates, taxes are killing canadians…

glen grossmith
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glen grossmith

As I was able to persevere Trump clapping at his own speech last night during the State of the Union, it confirmed to me what I feared I already knew. Canada going one way, the US is going the other. I imagine that Justin is a nice guy while we know Donald is not, but the US and Canada are taking 2 different approaches to the economy and we are in big trouble. In the US we are seeing lower taxes and increased business spending and investment due to the policies of the new administration. In Canada we are seeing… Read more »

LOUIS joannette
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Mr Garnau and Scarpaleigia WE COULD REMIND THE AMERICAN THAT WE HELP THEM DURING THE RUSSIAN MENACE OF FIRING MISSILE TO THE USA DURING THAT TIME the American missile RANGE WHERE NOT IN RANGE TO HIT MOSCOU. Maybe tell prime minister during his trip in the usa that we are the good boy. THEN AND NOW TOO. Louis Joannette the Distant Early Warning Line, also known as theDEW Line or Early Warning Line, was a system of radar stations in the far northern Arctic region of Canada, with additional stations along the North Coast and Aleutian Islands of Alaska, in… Read more »