Canada’s tax reform could start with small business changes: official

Wayne Long, an MP for Saint John—Kennebecasis and secretary of state for the Canada Revenue Agency, says the Canadian government plans to tackle tax code reform "one bite at a time." Long, who is also a Liberal MP, believes the upcoming fall budget will be "chapter two" in the Liberal government's efforts to attract investment and set the country up for growth following the impact of U.S. tariffs.

The government has already made a few changes to the tax system, such as offering immediate tax write-offs for new equipment for businesses and reducing the lowest income tax bracket by one percentage point. Despite these changes, the Liberal party has pledged to conduct an "expert review" of the corporate tax system ahead of the 2025 election.

However, some Conservatives argue that the government has only made superficial changes and need to take up the challenge of serious tax reform. Experts agree that meaningful tax reform is a long and politically challenging process, with many suggesting the government remove complexity from the system and eliminate boutique tax credits.