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16-Jun-2020 23:46

Overall, the reform, especially on the business side, will have a significant impact on American competitiveness if the Republicans, desperate for a big win, ultimately adopt the a tax package for 2018." "While exports of goods and services have been growing recently, sales by Canadian-owned foreign affiliates have grown even faster. will foreign affiliate sales exceed exports (as they did in 2015) in the future?

This opens a debate on how we should measure Canada’s international success.

Canadians created 144,080 companies in the second quarter, while 133,380 employers disappeared, according to Statistics Canada.

That’s not a fast enough net creation of businesses.

While the rate of increase subsequently slowed, workers are still much more efficient today than two decades ago (just ask any economist no longer waiting around the fax machine).

Further, we are possibly on the cusp of another productivity revival if rapidly-advancing AI technology can help humans work faster, more accurately and more creatively." "Lots of attention is given to government deficits, but little to the balances of the other sectors of the economy, including the household and corporate sectors.

Meanwhile the corporate sector has run large surpluses, thanks to record profits, corporate tax cuts and low rates of business investment.

Should the focus be on the things we produce within our borders or the things produced by Canadians at home and abroad?

" "This chart shows the acceleration in productivity following the widespread use of the internet at the turn of the century.

From what I have been told, the plan is for the Senate to pass legislation perhaps by December 1. federal-state tax on new investment will plummet by almost a half with the new House and Senate corporate tax provisions. Both Canada and the US would be above the simple average OECD effective tax rate on new investment of only 17.3%.

Both Congressional bodies would then pass a bill after their reconciliation conference in December perhaps. Although there are some differences between the House and Senate bills, they are remarkably similar especially with respect to big-ticket items.

But business investment in Canada has been falling.



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