Price Waterhouse Cooper says it could be far worse than even the termination of NAFTA.
Canada’s lost tax advantage over the United States – caused by the failure to respond to tax cuts in the U.S. – puts a massive amount of Canadian jobs at risk.
That’s according to common sense, and also a new report from Price Waterhouse Cooper Canada.
Here’s a key section of their study:
“Our analysis suggests that the U.S. tax reform has eliminated one of Canada’s main competitive advantages. We are of the view that this loss will have a significant negative impact on capital-intensive sectors in Canada. All else being equal, these sectors as a whole would likely face a significant shift in investments from Canada to the U.S. over the next 10 years.”
In addition to the potential massive job losses, $85 BILLION in GDP is at risk.
As noted by BNN Bloomberg, “PwC said $85-billion in GDP – about 4.9 per cent of total output – and 635,000 jobs are at risk due to the U.S. leapfrogging Canada on the competitive front. It forecasts the chemical, machinery manufacturing and plastics industries would be most at risk. On a provincial basis, PwC said Ontario has the most on the line, accounting for nearly one out of every three dollars identified at risk.”
We already knew this was a huge risk. It’s simply common sense.
Investment goes where it can be the most successful. Right now, Canada is moving in an anti-business direction, with higher regulations and a destructive carbon tax. Meanwhile, the U.S. is reducing job-killing regulations and substantially cut their business and personal tax rates.
Predictably, investment is heading south.
If the Trudeau government wanted to stop this damage and stop the huge risk to so many jobs, they could easily achieve it by reducing the business tax rate, cutting taxes for Canadian workers and families to spur demand, eliminate the carbon tax, and reduce regulations.
So far, none of that is happening. Instead, our economy is being strangled, and the risks are piling up.
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