The chief executive officer of Linamar Corp. (LNR.TO) is urging the federal government to introduce corporate tax cuts when it unveils the budget next week, adding that it’s critical for Canada to improve its competitiveness vis-à-vis the U.S.
“The No. 1 thing I’d be looking for is corporate tax cuts,” Linda Hasenfratz told BNN Bloomberg’s Amber Kanwar in an interview Tuesday. “When we saw the U.S. reduce their taxes it eliminated the advantage that Canada had in terms of a lower corporate tax rate. I think it’s critical to restore that.”
Prime Minister Justin Trudeau’s government has faced repeated calls from some in the business community to do more on tax reform, after the Trump administration implemented tax cuts last year.
In November, Finance Minister Bill Morneau unveiled $14 billion in temporary write-offs for capital investment in its fiscal update – a move that Hasenfratz said was “great and good to see.”
“Certainly, looking at Canadian competitiveness and what we can do – whether it’s tax rates or looking at regulatory issues – [is] really important and I do think it’s something that our government should be taking very seriously,” Hasenfratz said.
“I think there’s other areas where things are a little tougher here in Canada, so the tax rate helped to offset that… It’s critical that we look to restore that competitiveness in the North American and global marketplace.”
Morneau is set to release the federal budget on March 19.
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