Tax Cuts and Their Fiscal Implications Across Borders

Another week brings another tariff threat from the Trump administration, without clarity on who is being targeted and for what reason. Andrew argues that the media must resist applying normal rules of rational behaviour that you would expect from any other presidency. Trump is becoming increasingly erratic in his second term and must continue exceeding expectations with his bad behaviour to satisfy himself and his followers. Meanwhile his Big Beautiful Bill includes tax cuts that will add billions of dollars to America's debt, an irresponsible fiscal plan that mirrors Mark Carney's tax cut plan in Canada. Why are governments around the world happy to increase debts and deficits at the expense of the long term health of their economies? Andrew and Rudyard agree that to increase productivity in Canada we need more investment which comes from tax reform and bringing down the top marginal tax rate - something no government wants to do.