The article discusses the Canadian government’s fall economic statement, which included $16 billion in tax breaks for businesses. The plan aims to boost business investment by allowing accelerated write-offs of investments in certain assets, such as equipment and property. This move is seen as a response to the US corporate tax cuts in 2017, which had put pressure on Canada to remain competitive.
The article also mentions that the government’s plan includes additional support for the struggling journalism industry, including enabling non-profit news organizations to take tax-deductible donations and creating new tax credits. This measure is expected to reduce government revenues by $600 million over five years.
Some experts have welcomed the business tax changes, with Randall Bartlett, chief economist at the University of Ottawa’s Institute for Fiscal Studies and Democracy, stating that while Canada’s corporate tax regime was still competitive before the announcement, there was pressure on the government to do something to regain its relative advantage compared to the US.
However, opposition critics have criticized the plan, with Conservative parliamentary finance critic Pierre Poilievre arguing that the government is putting future generations in a "reckless state of danger" by continuing to run deficits during good economic times. He warned that when the economy inevitably experiences a downturn, the government will be forced to raise taxes or slash spending at a time when the economy needs the opposite response.
The article also notes that the government’s plan does not include a timetable to eliminate its deficits, which has drawn criticism from economists and opposition critics alike. The government has abandoned its previous pledges to balance the books by 2019 and instead focuses on reducing the net debt-to-GDP ratio each year.
Overall, the article presents a mixed view of the Canadian government’s fall economic statement, with some experts welcoming the business tax changes while others criticize the lack of a clear plan to eliminate deficits.
