While investment surges in the United States, it’s collapsing in Canada.
Despite continued warnings that Canada’s competitive position relative to the US is getting worse and worse, the Trudeau government is refusing to take action.
A recent report notes that the Canadian Manufacturers and Exporters is warning that the investment situation in Canada is very concerning.
Technology and equipment investment is down, and foreign investment in Canada is down. Meanwhile, investment is surging in the US as they have made tax changes that give them an investment advantage over Canada.
The president of the Canadian Manufacturers and Exporters said “A tax advantage is critical for Canada. We are a smaller and less attractive market than the U.S. and we have many non-tax costs of doing business through regulatory red tape.”
He added, “One of the things we really were struck by is that our exports of manufacturing goods (have) grown at less than the rate of inflation.”
They have been calling for Canada to cut business taxes and “allowing companies to deduct 100 per cent of their investments in new machinery, technology and other capital assets.”
Yet, the Trudeau government keeps ignoring these warnings, even as the evidence of Canada’s growing competitive weakness piles up.
The Finance Department says they think the economy is competitive, and say they’re still studying what’s going on.
Yet, as they ‘study’ the issue, Canada falls further and further behind, and the carbon tax makes things even worse.
That’s the price our country is paying for having a government more concerned with ‘gender budgets’ and virtue-signalling instead of building a strong economy.
Photo – YouTube