Published • loading... • Updated
Ottawa Expands Tax Deduction to Entice Business Investment
The measure is expected to cost $36 billion over five years and lower the marginal effective tax rate on new business investment to 6.4 per cent.
- On Tuesday, Prime Minister Mark Carney announced a permanent "productivity mega deduction" at the Canada Investment Summit in Toronto, allowing companies to immediately write off full costs of new assets to boost productivity and attract global investors.
- Ottawa is making the tax incentive permanent for a wider range of capital assets, expanding eligibility to more than 65 per cent of investments from roughly 15 per cent, with a fiscal cost of $36 billion over five years.
- The measure cuts Canada's marginal effective tax rate to 6.4 per cent from 13 per cent, less than half that of the United States, while Ottawa expects the move to unleash an "investment supercycle" generating up to $22 billion annually in additional economic output.
- Petroleum Producers CEO Lisa Baiton called the deduction a "major step forward," while University of Calgary economist Trevor Tombe labeled it "perhaps the largest one-time tax change federally in decades," though he noted coverage could have reached 100 per cent.
- Estimates suggest the deduction will reduce corporate tax revenue by around 7.5 per cent annually, but Ottawa projects this will be offset as the "investment supercycle" generates additional economic output and new tax revenue.
Insights by Ground AI
30 Articles
30 Articles
The Globe & MailReposted by 
BizToc
BizTocOttawa unveils ‘mega deduction’ that allows companies to promptly write off new investments
Measure would cost the government an estimated $36-billion in first five years and cut marginal effective tax rate to 6.4%, less than half that of U.S.
·Toronto, Canada
Read Full Article
L’actualitéReposted by 
La Presse
La PresseThe federal government is introducing a new tax measure to stimulate business investment. Prime Minister Mark Carney announced the "productivity megadeduction" at the Canadian Investment Summit in Toronto on Tuesday, which will expand the proportion of assets covered from approximately 15% to more than 65%.
Winnipeg Free Press+24 Reposted by 24 other sources
'Moment we've been waiting for': Biz groups cheer Ottawa's tax deduction expansion
The federal government is expanding a tax incentive to cover a broader array of assets as it aims to drive $1 trillion of new investment in a move roundly applauded by business groups.
·Winnipeg, Canada
Read Full ArticleCoverage Details
Total News Sources30
Leaning Left19Leaning Right0Center7Last UpdatedBias Distribution73% Left
Bias Distribution
- 73% of the sources lean Left
73% Left
L 73%
C 27%
Factuality
To view factuality data please Upgrade to Premium
