Trump’s Probable Tax Reductions and Canada

Dr. Jack Mintz needs no compliments from me . He is a world renown tax expert . He writes articles from time to time for the National Post . I remember last year he had written one that addressed one of my big pet peeves concerning Government budgeting. He had pointed out, as I have in this blog , how Canadian Governments have disguised their real debt by separating their current and capital expenditures.

Today  he had one on the probable tax reduction policies of President elect Trump and how they would affect Canada. Right now Canada has an advantage on overal personal and corporate tax rates with the US. But Dr. Mintz points out that it is highly probable this will change making Canada even more uncompetitive with the US than it already is . He points out that on personal income tax on individuals earning annually over $120,000–$150,000 US dollars  in the US , that they will see a reduction that will put their rate well below , over 10% , that of similar persons of the same income in Canada ‘.  Similarly , he highlights that the US corporate tax rate is likely to be no more than 20% ( Federal and State) while Canada’s will be 27% ( Federal and Provincial ).

Theses are big changes and if they materialize, and all indications are that they will, Canada will be at a significant disadvantage in attracting investment , as well as see Canadian investment and many of our best and brightest going south.   Also being contemplated by President elect Trump are other industry specific tax changes which will further reduce the tax burden. Add to this a decided push to reduce regulation by a new Trump administration including environmental regulation and one can see trouble for Canada  on the horizon.

Of course, Canada at the same time seems to be moving in the opposite direction; more regulation , carbon taxes , higher electricity costs  etc . And our r and d expenditures by Government and Industry do not match the Americans , and hence our productivity is 25% to 30% lower . Seems like a perfect storm .

Thanks to Dr. Mintz we cannot say we were not informed of the pending challenges that await us.

 

Dr. Jack M. Mintz is the President’s Fellow of The School of Public Policy at the University of Calgary as of July 1, 2015 after serving as the Palmer Chair and Director since 2008. He also serves on the boards of Imperial Oil Limited, Morneau Shepell and is chair and Vice-President of the Social Sciences and Humanities Research Council of Canada.

As of September 1, 2015, he has been appointed as the National Policy Advisor for the accounting firm EY.

He serves as an Associate Editor of International Tax and Public Finance and the Canadian Tax Journal, and is a research fellow of CESifo, Munich, Germany, and the Centre for Business Taxation Institute, Oxford University.

Dr. Mintz held the position of Professor of Business Economics at the Rotman School of Business from 1989-2007 and Department of Economics at Queen’s University, Kingston, 1978-89. He was a Visiting Professor, New York University Law School, 2007; President and CEO of the C. D. Howe Institute from 1999-2006; Clifford Clark Visiting Economist at the Department of Finance, Ottawa; and Associate Dean (Academic) of the Faculty of Management, University of Toronto, 1993 – 1995.

He was founding Editor-in-Chief of International Tax and Public Finance, published by Kluwer Academic Publishers from 1994 – 2001. He chaired the federal government’s Technical Committee on Business Taxation in 1996 and 1997 that led to corporate tax reform in Canada since 2000. He also has served as chair of the Alberta Financial and Investment Policy Advisory Commission in 2007 that reviewed saving policy of the Alberta government.

In addition, in 2009, he served as the Research Director of the FPT Research Working Group on Retirement Income and he was also the author of the Summary Report on Retirement Income Adequacy.

He served on the federal Panel on Healthcare Innovation in 2013-14 as well as the Minister of Finance’s Economic Advisory Council since December 2008.

Dr. Mintz has consulted widely with the World Bank, the International Monetary Fund, the Organization for Economic Co-operation and Development, federal and provincial governments in Canada, and various businesses and non-profit organizations.

Dr. Mintz became a member of the Order of Canada in 2015 as well as receiving the Queen Elizabeth Diamond Jubilee Medal in 2012 for service to the Canadian tax policy community. Widely published in the field of public economics, he was touted in a 2004 UK magazine publication as one of the world’s most influential tax experts. Alberta Venture magazine has recognized him as one of the fifty most influential Albertans in 2008, 2010 and 2013. The Financial Post named him one of the five most influential Canadians in regulation in 2012.

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2 thoughts on “Trump’s Probable Tax Reductions and Canada

  1. Mintz is well respected. Maybe the Princeling will nominate him to the senate! Shame Mintz wasn’t able to lobby our finance minister since he is a director of Morneau’s prior company! This governments policies are typical Liberal. Big government, strong Union ties, tax and spend. So far after a year in power there are no new jobs.

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