The Impacts of US Tax Reform on Canada’s Economy

In addition, we have assessed the impact of changes to personal income tax rates in the US on Canada’s ability to attract and retain high-skills talent relative to the US, and examined the impact of the US tax reform on the attractiveness of conducting research and development (“R&D”) in Canada relative to the US. [...] In conducting our analysis, we have focused on the impacts of the changes to the US tax code that are most likely to affect investment in Canada, as follows: • The lowering of the statutory corporate income tax rate. [...] PwC | The Impacts of US Tax Reform on Canada’s Economy | 11 The state of Canadian competitiveness The following section reviews the state of Canada’s overall competitiveness in relation to the US. [...] The conference expects the US tax reform to significantly impact investment in the rest of the world. [...] Due to the larger size of the US market, the average size of firms in the US is larger compared to Canada.