Insightful piece by @jackmintz: “…there is nothing mega about the new [Liberal tax] policy, which fails the three criteria for a good tax structure: efficiency, fairness and simplicity. A far better choice would be to reduce corporate income tax rates so as to spur investment in all business activities, not just those chosen by government. Most major tax reforms around the world, including Canada’s past efforts, follow two principles: low rates and neutrality across business activities. The mega productivity deduction goes in the opposite direction… “…This produces a negative tax rate that effectively subsidizes capital, giving businesses a preference for investing in capital-intensive processes like AI rather than hiring workers… “…Ottawa is right to encourage investment in Canada. But it has chosen Donald Trump’s path, not a Canadian one. We should keep to the tried-and-true recipe we have followed in tax reforms over the past half century: lower the tax rate and broaden the tax base.” financialpost.com/opinion/me…

Ok, this is a pretty big deal Marginal effective tax rate on new investment going from 13% to 6.4% Immediate expensing used to cover about 15% of what a business actually buys, like machinery, equipment, tech. With these new rules, it’s 65%+ and would apply to more things: pipelines, rail, fibre, software, R&D, patents, vehicles, computers. What that means in practice: if you buy a $10M asset, you write off $10M this year and lowers the tax bill now Very meaningful for capex heavy industries like energy, mining, telecom, logistics