Not long ago, Canada was seen as a better place to do business than the US. But the combo of Trump tax cuts and Trudeau’s tax/regulatory increases has completely eliminated our advantage.
Before the Trump tax cuts, Canada had a lower combined business tax rate than the United States.
Even after the Trump tax cuts – which the government should have been preparing for ever since Trump won the election – the business tax rate comparison between Canada and the US is pretty close.
However, the Trudeau government has imposed policies that make our economy much less competitive than the US, resulting in tens of billions of dollars flowing south. While it gets less expensive to business in the US, Trudeau is imposing job-killing regulations and an ever-escalating carbon tax on consumers and businesses here at home.
This makes our economy weaker, and puts us in a more vulnerable position as we attempt to fight back against the newly imposed US tariffs on metals.
The problem is that even as the government pushes back against the tariffs, their policies are pushing jobs and investment out of Canada and into the US.
So, if Justin Trudeau really wants to fight back against the US, he would scrap the widely-hated carbon tax, and cut the regulations that make it tougher to get projects approved and do business in our country.
If he did that, he would stem the flow of money heading north to south, and might even draw some jobs and investment back to Canada from the US.
It would show that Canada is prepared to fight as hard as necessary to defend and strengthen our economy.
Unfortunately, Justin Trudeau shows no sign of doing that. Instead, he’s been doubling down on his failing economic policies, even as growth in the US surpasses the growth of Canadian GDP and their job market surges.
Additionally, even the tariffs being imposed by Trudeau aren’t taking effect immediately (which would send a stronger message). Once again, it seems Trudeau may be more interested in virtue-signalling than in real comprehensive action to stop our wealth from flowing south.