The Tax Foundation’s 2024 International Tax Competitiveness Index compares tax systems for 38 countries that belong to the Organisation for Economic Co-operation and Development.
Key findings from the report include:
- Canada ranked 17th (out of 38) on overall tax competitiveness, which is two spots worse than last year’s rank
- Canada ranked 31st on individual tax competitiveness
- Canada ranked 26th on business tax competitiveness
- Canada ranked 25th on property tax competitiveness
- Canada ranked 8th on consumption tax competitiveness
Weaknesses of Canada’s tax system include taxing capital gains “well above” the OECD average, higher business taxes than the OECD average and implementing a digital services tax, according to the report.
“This report shows high capital gains taxes are a reason Canada is falling behind on tax competitiveness and it’s more proof Prime Minister Justin Trudeau is wrong to hike capital gains taxes,” Terrazzano said. “We need politicians to encourage success in Canada and stop punishing our doctors, entrepreneurs and people saving for retirement.”
The report notes “some strengths of the Canadian tax system” include the fact “Canada does not levy wealth, estate, or inheritance taxes.”
“A bright spot for Canada’s competitiveness is that we don’t have a wealth tax and politicians should avoid this damaging tax,” Terrazzano said. “Instead of more government spending, politicians should let families and businesses keep more of their money to grow the economy.”
You can find the Tax Foundation’s 2024 International Tax Competitiveness Index here.
For more information or to schedule interviews, please contact:
Franco Terrazzano
CTF Federal Director
Phone: 403.918.3532
Email: fterrazzano@taxpayer.com
