One of the big themes following this week’s federal budget was the lack of measures to support business investment, and this report suggests that the overall outlook for 2018 is still subdued. While there are some promising currents below the surface, like an improved (though still subdued) private-sector M&E outlook, we’ll see how those intentions play out in a year likely to be challenged by uncertainty on the trade front. Source – BMO Economics

1. Capital Spending
and Corporate Tax –
Canada
PAUL YOUNG CPA, CGA
MARCH 1, 2018

2. Paul Young - Bio
• CPA, CGA
• Financial Solutions
• SME – Risk Management
• SME – Emerging Technology
• SME – Business Process Change
• SME – Close, Consolidate and Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
Contact information:
Paul_Young_CGA@Hotmail.com

3. Summary
 One of the big themes following this week’s federal budget was the lack of
measures to support business investment, and this report suggests that
the overall outlook for 2018 is still subdued. While there are some
promising currents below the surface, like an improved (though still
subdued) private-sector M&E outlook, we’ll see how those intentions play
out in a year likely to be challenged by uncertainty on the trade front.
Source – BMO Economics

4. Agenda  Capital Spending and Corporate Tax
 Capital Spending / Provinces
 Durable Goods USA
 FDI
 Tax Policy (M/E) Write-down
 Business Outlook / Capital Spending

5. Tax, Profits and Capital Spending
Source – Government of Canada, BMO Economics and Stats Canada

6. Tax, Profits and Capital Spending
Source – Government of Canada, BMO Economics and Stats Canada

7. USA Durable Goods
Source - BMO
https://twitter.com/BloombergCA/status/966029218692
980737
Morneau and his team are doing the following:
• Hike payroll taxes (CPP)
• Introducing Carbon Tax (Regressive tax)
• Raising the cost for business due to longer regulatory
process
• Failing to complete trade deals
Canada is less competitive today!
https://www.slideshare.net/paulyoungcga/competitivene
ss-canada-vs-other-countries-january-2018
Trump has done the following:
• Reduced taxes
• Reduced regulation
• Emphasize in shoring jobs

8. FDI - 2018
Source - https://www150.statcan.gc.ca/n1/daily-quotidien/190424/dq190424a-eng.htm
• FDI continues to flee Canada - Great work by Fraser Institute - https://www.fraserinstitute.org/studies/flight-
of-capital-from-canada
• Morneau denial of FDI - https://business.financialpost.com/opinion/heres-the-evidence-foreign-investors-
are-seriously-avoiding-canada-despite-morneaus-denialism

9. Tax Policy – M/E Write-Down
 Government still needs to review all their tax policies -
https://ipolitics.ca/2019/03/19/canadas-tax-system-needs-a-full-review-
were-all-on-the-same-page/
 Businesses applaud the changes to equipment write-down, but more
things need to be done including the scrapping of C-69 and the carbon tax
- https://www.slideshare.net/paulyoungcga/business-competitivesness-
canada-march-2019

10. Business
Confidence /
Capital Spending
Source -
https://www.ctvnews.ca/business/c
anadian-business-sentiment-
drops-from-high-levels-central-
bank-survey-1.4380284