Hub Podcasts The effects of Trump tariffs and Canada's tax dilemma
Nov 12, 2025
Jack Mintz, a tax policy expert and President's Fellow at the University of Calgary, explores the recent corporate tax changes in Canada. He critiques the limitations of aggregate tax rates, highlighting significant variations across industries. Mintz discusses the impact of Trump's tariffs on manufacturing and the need for a comprehensive corporate tax review. By advocating for a neutral tax system, he argues that it can drive productivity and enhance competitiveness. Mintz also evaluates the 2025 budget’s tax measures and offers practical advice for reform.
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Aggregate METR Masks Big Sector Gaps
- Canada's aggregated marginal effective tax rate hides large sector differences that distort capital allocation.
- Jack Mintz warns these distortions undermine competitiveness by pushing investment into lower-return industries.
Manufacturing Receives Hidden Tax Subsidies
- Manufacturing can have a negative effective tax rate, meaning it receives an indirect tax subsidy.
- That subsidy misallocates capital toward lower-productivity investments, hurting overall growth.
Include All Levies When Comparing Competitiveness
- Omitting levies like carbon taxes or property taxes can reverse competitiveness conclusions for sectors.
- Mintz shows energy looks competitive until carbon costs are included, which erodes that advantage.