I have three kids that are young, educated, and entering (or will be entering) the workforce. I would like them to work here in Canada.

 

The chart below is striking and caught my attention. As you can see, Canada's real GDP per capita hasn't had much (if any) growth over the past 10 years, while our neighbours to the south have experienced 18% growth. For the most part, Canada's lackluster growth can be attributed in-part to a hesitant approach to producing large-scale natural resource projects and infrastructure projects, and an unfriendly corporate tax environment.

 

Getting projects built in Canada is no easy task, to say the least. Since 2011 we have had 18 proposed LNG projects. The first one will come online this year. During that same time period, the United States built seven LNG facilities, with four more to come in the next two years.

 

Corporations in Canada pay capital gains tax at a rate of 35.7% and dividends at 39.3%, well above the respective OECD averages of 19.7% and 24%¹. Our corporate rate of 26.2% is also above average among OECD countries (23.9%), while the U.S. corporate tax rate is only 21%¹.

 

The current trade negotiations with the United States are presenting an opportunity for Canada to change direction and become more competitive. We could leverage this moment to implement policies that drive economic growth, increase productivity, and attract investment. We are in a rare situation where the whole the country is focused on the same objective. One can only hope we embrace this opportunity to make Canada more self-dependent and less reliant on the United States. Not to mention job creation for the next generation so they stay here in Canada! Let’s go!

 

 

I have also included a note from our CIBC Economics team entitled “Misery loves company”

 

As always, if you have any questions, please feel free to give us a call.

 

Have a great weekend.

 

Milan

 

 

¹ Source: www.taxfoundation.org. Retrieved Mar 20, 2025.