- Canadian Prime Minister Justin Trudeau is offering tax breaks to businesses instead of cutting the country's deficit, as the Liberal government uses increased revenue to keep up with U.S. tax reform, Bloomberg reports.
- The corporate tax cuts are worth C$14B (US$10.5B) over six years, according to a fiscal update unveiled on Wednesday.
- The Canadian dollar is up 0.6% against the U.S. dollar, trading at 1.32 per greenback late Wednesday.
- The tax changes will allow companies to write off capital investments more quickly, especially in manufacturing.
- “This incentive will encourage more businesses to invest in assets that will help drive business growth over the long term,’’ said Finance Minister Bill Morneau in prepared remarks. “Because our economy is doing well, we also have the fiscal room to follow through on the commitments we made.’’
- ETFs: FXC, EWC, QCAN, FCAN, HEWC, BBCA, FLCA
- Now read: Nearing The Pause That Will Not Refresh?
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