Comparing the combined national and sub-national corporate income tax (CIT) rates in Canada, the United States, and the GDP-weighted OECD averages shows that Canada had a significant CIT advantage between 2012 and 2018, driven by lowering the combined federal-provincial corporate income tax rate.
That edge vanished in 2018 when corporate rate cuts under the Tax Cuts and Jobs Act in the United States erased Canada’s advantage. A competitive CIT attracts investment and increases profits.
To learn more about how Canada can restore its tax competitiveness, see this report.
