According to a study, income tax increases in Canada are hurting business development.

According to a recent study, income tax hikes implemented in Canada over the previous several years have impeded the growth of new companies nationwide. According to the Montreal Economic Institute (MEI), the firm entrance rate drops by 0.21 percentage points for every percentage point that the marginal income tax rate rises. 

Tax Income to Encourage the Production of Electric Vehicles

According to Mr. Faubert’s estimates, the federal government’s subsidies for two electric vehicle facilities in Ontario are equal to the higher tax collections that impeded the growth of new businesses. The Canadian government said it would give Volkswagen tax credits of up to $13.2 billion in April 2023. The government also promised to provide the plant with a $700 million grant. 

But in June, the parliamentary budget officer predicted that the amount would rise by roughly $2.8 billion. Through the actions of the many enterprises that come and go but never stop inventing and investing, it would be wiser to let the market’s dynamism guide the nation’s economic growth. We want a competitive climate that encourages investment and entrepreneurship to accomplish this.

US senators encourage Canadian Prime Minister Justin Trudeau to fulfill his pledge to invest 2% of GDP on defense.

In response to worries that important NATO allies are underperforming, a bipartisan group of 23 US senators has written to Canadian Prime Minister Justin Trudeau, pleading with him to honor his pledge to devote 2% of GDP to defense. As Russia’s war against Ukraine continues, the uncommon letter from lawmakers to a head of state is sent just two months before NATO’s next annual summit in Washington, DC, which will commemorate the alliance’s 75th anniversary.

This 32-nation defensive alliance was founded with Canada as one of its founding members. The senators acknowledged Canada’s many contributions to NATO, including its spearheading of standards development about democracy, economic viability, and human rights, as well as its support of the military.

Concerns about Trump’s potential actions against NATO during a potential second term are also present among Europeans. If he wins the November election, Trump would think about advocating for a two-tiered NATO. Consequently, nations that fail to reach the 2% GDP expenditure goal would not be covered by NATO’s Article 5, which ensures that the alliance’s resources can be deployed to defend any one member country in the event of an attack.

According to Trudeau, Canada dismissed six Indian ambassadors because New Delhi would not cooperate.

As a result of New Delhi’s refusal to cooperate with criminal investigations, Prime Minister Justin Trudeau claims his administration withdrew six Indian diplomats from Canada. “Canada continues to request that India cooperate with RCMP investigations into violent incidents and coercive behavior associated with Indian government agents,” he said.