Justin Trudeau is offering tax breaks to business instead of cutting Canada's deficit, as his Liberal government uses a revenue windfall to keep pace with U.S. tax reform.
Trudeau's finance minister, Bill Morneau, unveiled corporate tax breaks worth 14 billion Canadian dollars ($10.5 billion) over six years in a fiscal update Wednesday in Ottawa, the government's biggest support for businesses since taking power.
The changes — which allow businesses to write off capital investments more quickly, particularly in manufacturing — are aimed at responding to widespread warnings on competitiveness, which grew louder after President Donald Trump's tax reform.