The fallout from Donald Trump’s new proposed tax policies, compared to the opposite effect from a Hillary Clinton presidency, will directly impact Canada.
The lower business tax regime will attract businesses to locate and relocate in the US, and skilled workers will also be lured south of the border, as personal tax rates will head much lower than we pay here.
With planned tax cuts, US couples earning a combined $225,000 income will now pay only 33 per cent combined Federal and State tax compared to 39.6 per cent today. Meanwhile Canada’s rate is 53 per cent.
And corporate income taxes, which have been a long-time decider of where company’s locate, are forecast to drop from 35 to 20 per cent when combined with state taxes, compared to Canada’s 27 per cent.
When Trump signs the tax bills into law, Canada will immediately lose two of our key business advantages.