The Canadian government is a mess right now, and Justin Trudeau’s administration is to blame for it. Canadians should brace themselves for tough times ahead, because the economy is the weakest it has been in decades. The only way to salvage the Canadian economy is by introducing big tax cuts, but that doesn’t look like it will happen. Right now the United States is trying to make their economy competitive, and this is happening without the Trump Administration reducing regulations to try and build a better business environment.
In comparison, Canada is struggling woefully, and is falling further behind the other major economies in the world. They can’t compete with the U.S. any longer, which is why there are rising trade tensions between the two neighboring countries. The United States has released a tax plan, which has given a big break to their economy, and if Canada doesn’t respond, it will fall completely off the pace in terms of economic competitiveness.
Canada currently holds an advantage of 4% over the United States over business tax rates, but that won’t last for much longer, with the way things are going for Canada. The carbon tax has not been introduced into the picture right now, along with the higher personal income taxes in Canada. However, when the Trump tax plan is put into place, it will hand the United States a 7% advantage over Canada, which will see investors pull money out of Canadian economy and invest it in the United States.
That would land a crippling blow to the Canadian economy, from which it will take a long time to recover, because it will not only be American companies jumping ship, but Canadian companies will run for greener pastures as well. The investment environment in Canada is getting worse, and with no sign of easing regulations, the big companies are taking their business elsewhere, and not investing in Canada, which is why the economy has come to a complete stop.