Memo to Prime Minister Carney: Make Canada Competitive Again!

Canada’s structural economic problems predate the Trump tariffs, and are partially due to uncompetitive corporate tax rates. A dramatic tax reform is needed to restore productivity growth.

Key Takeaways

• While the new U.S. tariffs receive all the attention as the source of Canada’s economic woes, the real problems are more long-term and structural

• Canada’s decision to keep corporate tax rates the same after the 2017 Trump tax cuts has put its business sector at a competitive disadvantage

• Ireland represents a powerful case study of a comparatively smaller economy using lower tax rates to spur productivity growth

• When combined with spending restraint, a pro-growth tax

  reform is fiscally realistic and would increase Canada’s long-term growth rate