Broad Tax Reform Needed to Revive Canada's Stagnant Economy

A long-overdue review of Canada's tax system is needed to boost economic growth and resilience. The Canadian economy has struggled with weak private investment, productivity, and output for over a decade.

According to Glen Hodgson, an international economist and financial consultant, the tariffs imposed by the U.S. administration have exacerbated this issue and made it even more essential to implement broad tax reform as part of a strategy to reduce reliance on the U.S. economy.

Hodgson's research report 'Building Resilience: The Next Phase of Economic Development and Growth in Canada' recommends promoting domestic economic growth by eliminating internal barriers, increasing public and private investment, and advancing broad tax reform to create better economic incentives and simplify administration.

The Canadian tax system has undergone significant changes since the last comprehensive review in 1960. However, numerous piecemeal reforms have been introduced over the years without considering their overall impact on the economy or the added administrative burden.