Q: How does the BBB affect Canada?
Sheldon
Sheldon
5i Research Answer:
With business and tax cuts, the bill could make the US more attractive for investors. Considering Canada's weak productivity, this could continue to see capital outflows out of Canada. The 'revenge tax' of higher witholding taxes on US investments was at least removed from the bill. The bill takes aim at renewable energy, and this could have a sentiment impact on Canadian companies in the sector. The bill also increases the likelihood of continued Canada/US trade disputes. It also sets up a conflict with Canada's goal of climate change policies vs the USA's.