Unleashing a North American Tiger: Canada-U.S. Economic Integration and the Implications for Business
Creating an environment that unleashes private sector innovation and entrepreneurship, and creates a winning edge for business, must be a priority for the Canadian, Mexican and U.S. governments. Increasingly, citizens of North America operate in a shared economic space and pursue common interests. Global competition for capital, labour and other productive resources is intense, and governments must increase cooperation to ensure the winning conditions exist in North America. Homeland security, energy, and disease control are obvious examples. However, labour mobility, capital market integration, tariff reduction, and regulation of goods and services are examples where decisive action is needed to improve the performance of the North American economy to unleash the “North American Tiger.”
Business Tax Reform: Can We Declare Victory Yet?
Every year Canadian federal and provincial governments reform the business tax structure – whether corporate taxes, sales taxes or royalties and fees. Is Canada on the right track? The answer to this question is ambiguous. Without doubt we have substantially reduced taxes on businesses in the past 10 years. However, today we are finding that governments are increasingly relying on the tax system to change economic behavior. Call it “reverse Reaganism” to put in terms recently espoused by Michael Bryant, Minister of Economic Development in Ontario whereby some industries are preferentially treated.
What Makes Good Policy?
Everyone has to deal with public policies every day. Many public policies are crucial and highly beneficial to make sure things work well in our lives. Governments therefore have a tremendous impact on what people do every day. It is therefore important to understand then what makes good public policy. Every public policy issue has its tradeoffs and people will disagree philosophically or have a different understanding of the facts.