As Canadian small business owners struggle with economic uncertainty, high costs of doing business, and international trade disruptions, maintaining a competitive tax environment is more important than ever.
High taxes prevent business owners from making productivity-enhancing investments in their business and the economy. Canada’s GDP per capita levels lag behind those of its southern neighbour, the United States.
This report assesses tax competitiveness for microbusinesses and small businesses across all levels of government in all Canadian provinces and in 20 U.S. states. Five of the most populous states were selected, with the remaining 15 chosen based on their proximity to and trade exposure with Canada.
Findings show that Canada’s tax competitiveness is weaker than that of the United States, with businesses generally paying more in income and in payroll and property taxes than their U.S. counterparts.
In addition to showing Canada’s overall standing, the report presents results for specific provinces based on businesses located in their largest municipality.
Recommendations are provided to Canadian governments on how to help make the country a more affordable place to do business, allowing Canadian businesses to better compete with the U.S. and our international counterparts.