Canada Tax Plan Aims to Compete With US for Jobs

Newsweek · Rich Percival · 2026-11-05 21:55 UTC

Canada pushes to make the country less dependent on its southern neighbor as Mark Carney delivers his second federal budget.

Canada is offering businesses a tax advantage over the United States to attract investment and create jobs, as Prime Minister Mark Carney seeks to make the country less dependent on its southern neighbor.

The proposed incentive would reduce Canada’s marginal effective tax rate on new business investment, a measure of the tax burden on an additional dollar invested, to 6.4 percent from 13 percent, according to government calculations. The comparable U.S. rate is 16.9 percent.

The proposal is a centerpiece of Carney’s second federal budget, titled "Masters of our Destiny." He took office in March 2025.

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