Canada Considers Tax Cuts for Competitiveness; US Views on Taxes Shift

Reports from the Investment Industry Association of Canada (IIAC) and the C.D. Howe Institute suggest that Canada's high personal income tax rates, relative to the U.S., hinder its competitiveness. The IIAC advocates for tax cuts to boost consumer spending and business investment. They highlight that Canada's top marginal tax rates, ranging from 47.5% to 54.8%, exceed those in many U.S. states. The C.D. Howe Institute also calls for tax reform, including cuts to personal and corporate income tax rates. In the U.S., a majority still favor raising taxes on large businesses and households earning over $400,000 annually. While Democrats overwhelmingly support this, Republicans are more divided, with increasing support for lower tax rates among them. Views on tax rates have shifted slightly in recent years, largely due to changing opinions among Republicans.