With the U.S. tax bill on its way for a presidential signature, the question immediately being asked is: what is Canada going to do to maintain its competitiveness with the U.S. to avoid losing out on corporate investing?
The bill is facing mixed reaction in the U.S. for a host of reasons, mostly how it will add to the U.S. deficit and the implications for social programs.
But the question is whether or not Canadian policymakers will have to react by changing Canadian tax laws.
For starters, the topic of U.S. companies that moved their tax headquarters over the last number of years through acquisitions – as seen in pharmaceuticals or with Burger King and Tim Hortons – may now see the opposite effect.
With these changes, Canada becomes less competitive and we could see businesses fleeing Canada as a high tax regime.
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