A number of Canadian business associations are calling on the federal government to reduce the commercial and business tax rate, and the government should be paying attention.
The Canadian Manufacturers Association and the Canadian Chamber of Commerce are among this group of concerned businesses who fear that Canada is losing ground on investment business retention, and they have the facts and figures to back it up.
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One of the main reasons for Canada’s slide is the massive business tax cuts recently passed by the U.S. Congress, which will see the U.S. corporate tax rate fall to 21 per cent from about 35 per cent, beginning next year.
That has investors questioning why they should sink money into Canadian businesses when American businesses are a far more attractive investment.
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The Canadian woes are exacerbated by the tariff war started by Donald Trump and unproductive NAFTA negotiations, which further erode investor confidence.
Finance Minister Bill Morneau has adopted a wait-and-see attitude before making any commitments, hoping that a new NAFTA deal would calm the choppy waters, but that may not be enough.
As long as this shaky economic relationship with the U.S. continues, our government needs to give Canadian businesses the tools to survive and thrive.
Tax relief would be a good place to start.
Bill Kelly is the host of Bill Kelly Show on Global News Radio 900 CHML.
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