It’s not a border tax Canadians should be most concerned about, but the possibility of incredibly low U.S. corporate tax rates under President Donald Trump, warns an American border tax expert.
Professor Alan J. Auerbach of the University of California, Berkeley, said on the CBC’s Power and Politics March 27 that corporate tax is “a real issue.”
Many companies now produce in the U.S. and Canada, and “automobile manufacturers would be a good example,” he said. “To the extent that they now may produce in Canada, in part because of Canada’s low corporate tax rate, they might see advantages in shifting some activities or opening new activities in the U.S. rather than in Canada.”
Watch Auerbach’s full comments on corporate tax rates in the video below.