One of the factors undermining Canada’s economic recovery is its tax structure. The system we have now is one of the worst among industrialized countries, ranking 23rd and 27th among 36 OECD countries in terms of corporate and individual tax competitiveness, respectively.
The consequences of this competitive disadvantage are obvious: Companies have a greater incentive to relocate to countries where taxes are lower. As for individuals, they are more likely to emigrate for work and enjoy a higher net salary for a few years.
We must absolutely rework our tax code to make it resemble the codes of other OECD countries in order for it to be more competitive. Maybe we could even become an attractive country for companies, and stop constantly worrying that our top businesses, and top minds, are going to leave. Instead, right now we have the worst record in the OECD when it comes to private corporate investment.
If we want to support Canadian businesses and encourage foreign companies to invest in Canada, we need to rethink our tax regime and make it more competitive. It would be an excellent way to ensure the long-term prosperity of our country and the welfare of Canadian families.