Carmichael: Carney’s budget missed a big opportunity
The budget’s immediate write-off for manufacturing equipment aims to cut Canada’s marginal effective tax rate (METR) on corporate income to 13.2% from 15.6%, supposedly putting it below the U.S. and all other G7 countries. But the METR — a theoretical measure rather than an actual payable rate — was already the G7’s lowest at 15.6%, yet business investment still lagged. Author Kevin Carmichael argues that “A policy designed to help entrepreneurs actually might be dulling the country’s entrepreneurial drive.”
