Trump’s tax tsunami is about to wallop Canadian jobs and investment
A tax tsunami is set to wallop the global economy this week as the U.S. proceeds with its most extensive tax package since 1986. U.S. tax reform will have an immense impact on the global economy, not just in terms of investment but also corporate bond flows and the distribution of government tax revenues. As America’s largest trading partner, Canada’s economy is about to get heavily side-swiped.
Late last Friday, a congressional conference committee released its final report outlining the version of the U.S. Tax Cuts and Jobs Act that compromises between the Senate’s plan and the House of Representatives’ proposals. Both houses will likely pass the compromise this week. President Donald Trump is expected to sign it, given the importance of this tax reform to his overall economic agenda. The rest of the world is going to feel the impact. As of Jan. 1, 2018, the U.S. is set to move from having one of the highest tax burdens on corporate investment all the way down to the middle of pack.