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Okay, now can we get serious about tax reform? With the passage of a landmark tax bill now seemingly assured in the U.S. Congress — the final vote should come next week — what was until lately a maybe-someday issue has become an urgent priority.

Whatever the bill’s impact, for good or ill, on the U.S. economy, there can be little doubt that, with a top personal rate of 37 per cent (down from 40 per cent) and a corporate rate of just 21 per cent (down from 35 per cent), it puts Canada under significant competitive pressure.

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The top rate of personal income tax in much of Canada is in excess of 53 per cent, federal and provincial combined; south of the border, in most states it will now be in the mid-40s or less. As for the corporate tax, the economist Jack Mintz has calculated, based on an earlier version of the bill, it will result in a near-halving of the marginal effective tax rate on investment, federal and state combined. Where before it was about 15 points higher than in Canada, it will now be the same or even lower.