Billions of dollars of investment is leaving Canada for the US because of the carbon tax.
As the trade war between Canada and the US escalates, the Trudeau government continues ignoring the fact that the federal carbon tax – and their imposition of the tax on unwilling Canadians – is crippling our ability to withstand the possible damage from trade disputes.
In the past few years, investment in Canada has collapsed and growth is slowing, while the opposite is happening in the United States.
Under the Harper government, Canada had a tax advantage over the United States when it came to the business tax rate, and we had no carbon tax. As a result, many companies moved from the US to Canada.
However, that started to change under the Liberal government, as the carbon tax became another cost that businesses had to consider – reducing the appeal of investing in Canada.
As if that wasn’t enough, the US cut their business tax rate, and it is now much lower than Canada’s.
So now, it’s far easier for businesses to prosper in the US than in Canada.
The carbon tax is making the US richer by pushing investment out of Canada, while making Canadians poorer, both because of the investment lost and the higher cost of everything from the tax.
This is essential to point out, especially because the Trudeau government is likely to use trade disputes as a cover for the fact that investment is leaving Canada and our economy is slowing – even though both of those things started before this latest trade fight.
The Conservatives will be in a tough political situation, because they can’t be seen as taking the side of another country against the Canadian government, but they also have to point out the real damage that Trudeau has done to Canada’s economy.
For that reason, focusing on the carbon tax is very important. It’s something the government can easily control, and they could bring billions of dollars of investment back to our country if they repealed it. Instead, they are doubling down on the hated-tax, and the Conservatives need to keep repeating that the carbon tax is making the United States a richer country while making Canadians poorer.
If Trudeau really wanted Canada to be economically stronger relative to the United States, the carbon tax would be repealed immediately.
Photo – YouTube