Declining tax competitiveness hurting investment

The 2018 Federal budget delivered earlier this week, which kept corporate income tax rates unchanged, failed to address the unease among executives about business taxation, in light of the large tax cuts recently enacted in the US. In addition, Canada’s decision to raise taxes on wealthy small companies seems ill-timed. All things considered, we fear policymakers are out of step with the times, leaving the economy at a potential disadvantage. This is another reason why we now think monetary policy will remain highly accommodative this year.