Tax Reform and Competitiveness

Canada’s tax system discourages the investment, risk-taking, and talent attraction that productivity growth requires. Corporate tax rates, personal income tax rates, and how capital is treated all signal to businesses and individuals whether Canada is worth investing in, and that signal has grown increasingly negative. Canada also relies less on more efficient consumption taxes than its peers, leaning instead on income and investment taxes that do the most economic damage. It has been 40 years since Canada’s last comprehensive tax reform. Fixing that starts here.