Globe editorial: Ottawa can’t ignore the dangers in Trump’s tax cuts
Source: The Globe and Mail
Prime Minister Justin Trudeau gave a speech in Davos on Tuesday that has largely been interpreted as a signal that his government will not lower the federal corporate income tax rate or cut environmental regulations to keep pace with similar moves in the United States.
If that proved true, it would not be a credible position for the government to take. As it is, it’s a bad message to send.
Speaking to the World Economic Forum, Mr. Trudeau chided corporations that “have put the pursuit of profit before the well-being of their workers.” He spoke at length about the importance of tax breaks for the middle class, of diversity, of hiring more women and of income equality.
It was a message that will clash with the one the U.S. President will deliver in Davos on Friday. Donald Trump is expected to push his America First agenda, attack free trade and boast about deregulation and tax cuts.
Mr. Trump, on the other hand, is concerned solely with America’s corporate bottom line. Thanks to the reform that Congress passed last month, the U.S. federal corporate tax rate will fall from 35 per cent to 21 per cent next year. Income taxes on the wealthy will fall, too, all paid for by massive debt and reductions in social services.