Laryssa Waler: Stop the tariff tit for tat — let's build a Canada the world wants to bet on
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We've seen this movie before, but as any parent knows, reasoning with a tantrum rarely works. With two sons and 13 years spent honing my skills in tantrum diplomacy, I've learned firsthand that yelling louder or digging in rarely helps. You win by stepping back, staying calm, and changing the game entirely.
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First: cut the cost of capital. Canada's combined federal-provincial corporate tax rate sits around 26.2 per cent — among the highest in the G7, and significantly above the OECD average of 23.9 per cent. And with falling corporate and personal tax rates in the U.S., we're lagging even further behind. If Canada does nothing, we risk losing investment to our neighbours south of the border for good.
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Consider Ireland, home to just 5.5 million people, where a 12.5 per cent corporate tax rate attracted giants like Apple, Intel, and Pfizer. Far from gutting public services, this strategy created a 24 billion euros (C$38.5 billion) surplus in 2023 and gave Ireland the fiscal strength to establish a sovereign wealth fund. Similarly, Singapore's statutory corporate tax rate of 17 per cent often drops even lower thanks to smart exemptions and streamlined processes. Last year, Singapore, with a population of nearly six million people, attracted nearly $190 billion in foreign direct investment — almost double Canada's performance.
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Of course, reducing taxes and regulations won't be painless. In the short term, this transition will mean challenges — especially for those industries that have come to rely on our overly regulated, taxpayer-subsidized, Ottawa-knows-best, economy. Instead, let's shift current subsidies toward retraining programs, job transition assistance, and targeted support to help workers adjust and thrive in a more competitive, forward-looking economy.
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Tax reform alone isn't enough — we need to replace cumbersome red tape with red-carpet service. Investors don't just look at costs; they're closely watching timelines and value predictability. Right now, Canada is infamous for project delays. Ottawa needs to deliver on its promised 'one-door, one-year' approvals guarantee. If regulators can't reach a decision within 12 months, the default answer should become yes.
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Let's also make livability our defining advantage. Corporations don't just invest in markets — they move their families. Canada used to be a natural winner here, but our shine has dulled. Carjackings in Toronto have more than doubled since 2019, violent crime rates are climbing, and housing costs have soared — starter homes in Toronto and Vancouver regularly exceed seven figures. Our education system often seems more focused on woke social justice initiatives than on mastering the basics, and our students' math and reading scores are slipping. The reality is, the highly skilled immigrants that accompany foreign direct investments are beginning to look elsewhere.
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