Business
Cut Corporate Income Taxes massively to increase growth, prosperity
From the Frontier Centre for Public Policy
By Ian Madsen
The federal Liberal government’s current budget proposal to increase the inclusion rate for capital gains tax was met with justifiable criticism and opposition – primarily from business groups. There is another corporate income tax increase looming. A 2018 corporate tax reduction, intended to make Canada less uncompetitive versus the 2017-enacted tax reform and cut in the United States (which came into effect fully in 2018), is set to expire starting this year.
According to a study by University of Calgary’s School of Public Policy’s Trevor Tombe, Canada’s corporate income tax rate on new investments will jump from 13.7% to 17% by 2027. Even worse, for Canada’s high-value-added manufacturing sector, taxation will triple. For a nation that is having a hard time, encouraging both domestic or foreign investors to invest in new plant, equipment and related goods and services, to reverse meagre productivity growth – as noted by the Bank of Canada – this development is beyond questionable.
This rise will hinder future improvement in incomes and the standard of living – making it a serious issue. It should be obvious to policymakers that increasing income tax on businesses and investment should be avoided. The legislation to make the 2018 provisions permanent is, alarmingly, not urgent to politicians seeking to appease certain types of class warfare-cheering voters.
There is at least one policy that could make Canada more attractive to business, investors, and hard-pressed ordinary citizens. It would be, dramatically and substantially, slash corporate income taxes – plus make paying taxes easier, as Magna Corporation founder Frank Stronach has suggested. It may surprise some Canadians, but, Ottawa’s take from corporate income taxes is a relatively small, but fast rising proportion of federal overall revenue: 21%, in fiscal 2022-23, according to Ottawa, up from 13% in fiscal 2000-21 notes the OECD.
This may seem ‘just fine’: let companies pay the taxes and reduce the tax burden on ordinary people. However, what actually happens is that every corporate expense, including taxes, reduces cash flow. The money remaining could either be reinvested or paid out as dividends to owners. A reminder: owners are founding families; pension fund beneficiaries (employees, citizens); and ordinary individuals.
As to reinvesting available funds, the less there are, the less capital investment can occur. Investment is required to replace existing equipment, or add new equipment, devices, software and vehicles for businesses. This not only keeps companies competitive, but also makes employees more productive. This, in turn, makes the whole economy more profitable, thereby increasing taxes paid to governments.
As for the dubious reason for the tax hike, gaining more revenue – recent experience in the United States is instructive. The 2017 Tax Cut and Jobs Act reduced corporate income tax from 39% of pre-tax income to 21%. The result: U.S. federal corporate income tax revenue rose 25% from 2017 to fiscal 2021. Capital investment rose dramatically too, by 20%, a key goal of many Canadian policymakers.
Taxes should be cut, enabling productivity improvement and bringing a future prosperity that we all yearn for. It would also keep us internationally competitive. We are currently mediocre, being around a 25% rate (OECD).
Canada has a hard time attracting investors. Now, our trading partners are leaving us in the dust.
Ian Madsen is the Senior Policy Analyst at the Frontier Centre for Public Policy
Business
Canada has given $109 million to Communist China for ‘sustainable development’ since 2015
From LifeSiteNews
A briefing note showed Canadian aid has gone to ‘key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change.’
A federal briefing note disclosed that well over $100 million has been provided to the Communist Chinese government in so-called “foreign aid” to promote “sustainable development” that includes woke ideology such as gender equality.
As reported by Blacklock’s Reporter, a recent briefing note titled Assistance to China from May for the Minister of International Development showed $109 million has gone to “key foreign policy priorities in China, including human rights, gender equality, sustainable development, and climate change” since 2015 and $645 million since 2003.
The briefing note asked directly if funding was “going to the Government of China.”
In reply, the briefing note stated, “Canada has not provided direct bilateral assistance to Chinese state authorities since 2013, though it continues to provide small amounts of funding to international partners and non-state partners on the ground.”
Former Prime Minister Justin Trudeau came to power in 2015 and increased relations with the Communist Chinese regime. This trend under the Liberal Party government has continued with Prime Minister Mark Carney.
During a 2025 federal election campaign debate, Conservative Party leader Pierre Poilievre called out Carney for his ties to Communist China.
Conservative MP Andrew Scheer has consistently called out any money at all going to China, saying, “I don’t believe Canadian taxpayers should be sending any money to China.”
“We’re talking about a Communist dictatorial government that abuses human rights, quashes freedoms, violates rights of its citizens, and has a very aggressive foreign policy throughout the region,” he noted.
Scheer added that he has been calling on the Carney Liberals to “stand up for themselves, stand up for Canadians, stop being bullied and pushed around on the world stage, especially by China.”
Most of the money in foreign aid was spent through globalist-backed agencies such as the World Bank and the United Nations Development Program. Some 39 percent of the money was said to have gone straight to Chinese recipients, but no projects were itemized.
Other countries have received millions of dollars in foreign aid, with $2.1 billion going to Ukraine, $195 million to Ethiopia, $172 million to Haiti, and $151 million to the West Bank and Gaza last year.
Foreign aid to all nations totaled $12.3 billion.
LifeSiteNews recently reported that the Canadian Liberal government gave millions in aid to Chinese universities.
China has been accused of direct election meddling in Canada, as reported by LifeSiteNews.
LifeSiteNews also reported that a new exposé by investigative journalist Sam Cooper has claimed there is compelling evidence that Carney and Trudeau are/were strongly influenced by an “elite network” of foreign actors, including those with ties to China and the World Economic Forum.
Business
Canada’s combative trade tactics are backfiring
This article supplied by Troy Media.
Defiant messaging may play well at home, but abroad it fuels mistrust, higher tariffs and a steady erosion of Canada’s agri-food exports
The real threat to Canadian exporters isn’t U.S. President Donald Trump’s tariffs, it’s Ottawa and Queen’s Park’s reckless diplomacy.
The latest tariff hike, whether triggered by Ontario’s anti-tariff ad campaign or not, is only a symptom. The deeper problem is Canada’s escalating loss of credibility at the trade table. Washington’s move to raise duties from 35 per cent to 45 per cent on nonCUSMA imports (goods not covered under the Canada-United States-Mexico Agreement, the successor to NAFTA) reflects a diplomatic climate that is quickly souring, with very real consequences for Canadian exporters.
Some analysts argue that a 10-point tariff increase is inconsequential. It is not. The issue isn’t just what is being tariffed; it is the tone of the relationship. Canada is increasingly seen as erratic and reactive, negotiating from emotion rather than strategy. That kind of reputation is dangerous when dealing with the U.S., which remains Canada’s most important trade partner by a wide margin.
Ontario Premier Doug Ford’s stand up to America messaging, complete with a nostalgic Ronald Reagan cameo, may have been rooted in genuine conviction. Many Canadians share his instinct to defend the country’s interests with bold language. But in diplomacy, tone often outweighs intent. What plays well domestically can sound defiant abroad, and the consequences are already being felt in boardrooms and warehouses across the country.
Ford’s public criticisms of companies such as Crown Royal, accused of abandoning Ontario, and Stellantis, which recently announced it will shift production of its Jeep Compass from Brampton to Illinois as part of a US$13 billion U.S. investment, may appeal to voters who like to see politicians get tough. But those theatrics reinforce the impression that Canada is hostile to
international investors. At a time when global capital can move freely, that perception is damaging. Collaboration, not confrontation, is what’s needed most to secure investment in Canada’s economy.
Such rhetoric fuels uncertainty on both sides of the border. The results are clear: higher tariffs, weaker investor confidence and American partners quietly pivoting away from Canadian suppliers.
Many Canadian food exporters are already losing U.S. accounts, not because of trade rules but because of eroding trust. Executives in the agri-food sector are beginning to wonder whether Canada can still be counted on as a reliable partner, and some have already shifted contracts southward.
Ford’s political campaigns may win applause locally, but Washington’s retaliatory measures do not distinguish between provinces. They hit all exporters, including Canada’s food manufacturers that rely heavily on the U.S. market, which purchases more than half of Canada’s agri-food exports. That means farmers, processors and transportation companies across the country are caught in the crossfire.
Those who believe the new 45 per cent rate will have little effect are mistaken. Some Canadian importers now face steeper duties than competitors in Vietnam, Laos or even Myanmar. And while tariffs matter, perception matters more. Right now, the optics for Canada’s agri-food sector are poor, and once confidence is lost, it is difficult to regain.
While many Canadians dismiss Trump as unpredictable, the deeper question is what happened to Canada’s once-cohesive Team Canada approach to trade. The agri-food industry depends on stability and predictability. Alienating our largest customer, representing 34 per cent of the global consumer market and millions of Canadian jobs tied to trade, is not just short-sighted, it’s economically reckless.
There is no trade war. What we are witnessing is an American recalibration of domestic fiscal policy with global consequences. Canada must adapt with prudence, not posturing.
The lesson is simple: reckless rhetoric is costing Canada far more than tariffs. It’s time to change course, especially at Queen’s Park.
Dr. Sylvain Charlebois is a Canadian professor and researcher in food distribution and policy. He is senior director of the Agri-Food Analytics Lab at Dalhousie University and co-host of The Food Professor Podcast. He is frequently cited in the media for his insights on food prices, agricultural trends, and the global food supply chain
Troy Media empowers Canadian community news outlets by providing independent, insightful analysis and commentary. Our mission is to support local media in helping Canadians stay informed and engaged by delivering reliable content that strengthens community connections and deepens understanding across the country
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