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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6 comments Add yours
  1. 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.

  2. 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.

  3. 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.

  4. 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…

  5. 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 the opposite. Higher taxes, new regulations, and uncertainty over access to foreign markets—that is, the ability to trade—have reduced Canada’s attractiveness to entrepreneurs and businesses.

    Taxes: While the US is lowering taxes, the top personal income tax rate in Canada exceeds 50 per cent in seven provinces. There is also uncertainty about additional future tax increases. Indeed, the federal government has not ruled out additional tax hikes on capital gains, stock options and personal income.

    Former chief analyst at Statistics Canada determined that Canada ranked second last amongst 17 industrialized countries for business investment as the Trudeau government has enacted a series of policies and sent signals that discourage economic growth.
    On top of this, Canada has the highest consumer debt per capita of the industrialized world. Foreign investment into Canada is now at the bottom of 23 industrialized nations.
    We are unable to take advantage of the rally in oil. Why? We cannot get our energy to market (Western Canada select is trading at $35.75 US vs West Texas at $65.00) WOW! We cannot get our product to market due to pipeline constraints. Our government would rather we buy Middle East oil and ship up the St. Lawrence vs building pipelines which our industry has the strictest guidelines in the world. In the meantime the City of Montreal allows for raw sewage to be dumped into the St. Lawrence.

    Our PM is an idiot. Period. I am not supposed to say such a thing but he has no clue about many things especially the economy.
    The truth is Canada is in big trouble when it comes to spending, deficits, taxes, competitiveness, and foreign investments. Even former Liberal Finance Minister John Manley is questioning this government’s policies. Our government spending will be at an all time high (including recessions). When you have a person at the helm who has no clue, and his sidekicks were part of the Ontario disaster (Gerald Butts) what would you expect?

    Sunny ways unfortunately will have a very rough ride.

  6. Mr Garnau and Scarpaleigia

    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 addition to the Faroe Islands, Greenland, and Iceland.
    Distant Early Warning Line – Wikipedia
    Distant Early Warning Line – Wikipedia
    The Distant Early Warning Line, also known as the DEW 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 addition to the Faroe Islands, Greenland, and Iceland.
    ‎Introduction • ‎Development and … • ‎Radar system • ‎Operations


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