Canada just started the largest tax increase you’ve never heard of – The Hub
The federal budget focused on increasing capital gains taxes to address generational fairness, but there are other tax changes coming that have been overlooked. One significant change is the increase in taxes on new business investment throughout the Canadian economy, which will lower investment and productivity. The temporary tax changes implemented in 2018 to allow faster write-offs for new investments are being phased out, leading to an increase in the effective tax rate on new investment in Canada. This will result in smaller investment returns and less capital for Canadian workers and businesses, ultimately lowering productivity growth. To boost productivity, it is suggested that governments should consider enlarging tax incentives for business investment rather than reversing the 2018 tax changes.
