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Meanwhile, other industrialized countries are expected to enjoy stronger economic growth in the years ahead, making Canada a laggard. For instance, the OECD projects U.S. growth at 2.5 per cent in 2018.

Rather than deal with our worsening investment climate, the budget turns a blind eye

Declining business investment remains a critical concern for Canada, which is a signal that entrepreneurs, investors and business owners don’t see the country as a hospitable place to do business. From the end of 2014 to the latest quarter with data, the level of (non-residential) business investment in the country declined by 19 per cent, after accounting for inflation. Among a group of 17 industrialized countries, Canada now has the second-lowest level of business investment as a share of GDP.

Tellingly, this decline in private-sector investment coincides with a marked deterioration in Canada’s investment attractiveness. Consider that a recent survey of business leaders found 64 per cent thought Canada’s investment climate had worsened in the last five years, owing partly to the growth in the tax and regulatory burden.

Indeed, Ottawa and several provinces have raised tax rates on personal income, corporate income and payroll. They have introduced new regulations on carbon, resource projects and labour. And they have generally increased the cost of doing business through higher minimum wages and energy costs. The cumulative effect of such policies, along with Ottawa’s strong anti-business rhetoric, has struck a harsh blow to Canada’s investment climate.

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Of course, not all the wounds are self-inflected. Sweeping tax reform in the U.S. has wiped out Canada’s nearly two-decade-long business-tax advantage over the U.S. while at the same time making the U.S. personal tax system even more competitive for skilled workers. Additionally, Canada’s vital access to U.S. markets is in doubt given ongoing NAFTA renegotiations.