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“We would certainly encourage the federal government to look at these issues because, in real time, we’re seeing capital flow out of the country,” McKay said.

“We see our government going around the world saying what a great place Canada is to invest — yes, it is a great country, it’s an inclusive country, it’s a diverse country, it’s got great people assets.

“But if we don’t keep the capital here, we can’t keep the people here — and these changes are important to bring human capital and financial capital together in one place.”

Since the election of U.S. President Donald Trump, Canada’s investment landscape has been dealing with deep uncertainty related the ongoing renegotiation of the North American Free Trade Agreement.

But many point to Trump’s recent U.S. tax measures as potentially more dangerous, fearing that dramatic corporate tax cuts in the U.S. will eliminate Canada’s advantage.

Canada’s competitiveness challenges go beyond the high-level, tax-rate changes in the U.S. bill, McKay said.

For instance, he pointed to another important element he said is encouraging capital to flow out of Canada — a change that enables U.S. companies to immediately write off the full cost of new machinery and equipment.

“The acceleration of that in the U.S. completely changes the investment returns that you see on major investments,” said McKay. “I think that alone may shrink competitiveness.”

Tax expert Jack Mintz said the U.S. change allows firms in all sectors to expense the full cost of new equipment. In comparison, he said, Canada has a two-year write-off for equipment for just the manufacturing and the processing sectors.