High marginal tax rates discourage productive economic activities such as work, savings, investment and entrepreneurship.
tax reform
Ottawa and many provincial governments have increased already uncompetitive personal income tax rates.
The taxman takes $17,800 in provincial taxes from the average Ontario family every year.
Prime Minister Trudeau has stated unequivocally that he won’t reduce Canadian taxes to remain competitive.
If you tax something less, you’ll likely get more of it.
The overall tax rate on new investment in the U.S. may fall to 18.6 per cent compared to 21.6 per cent in Canada.
As a share of GDP, business investment in Canada stands around 11 per cent.
When federal and provincial/local revenue shares are combined, the tax revenue-to-GDP ratio is close to 40 per cent.
The large gap in tax rates means there’s a strong incentive for those affected to respond.