The worsening of the investment climate is also due to the pursuit of the “progressive” political agenda in vogue lately across Canada, including: Heavier regulation of equity policies in pay and employment; increases in minimum wages; and restrictions on property development and the imposition of more stringent building codes.
The most important element of this progressive agenda has been the increase in taxes on corporations and high-income individuals and the prospect of still higher taxes through rising carbon taxes. Since an important part of the cost of the progressive agenda is covered by deficits, the growing debt portends even higher taxes in the future.
