Why the U.S. Inflation Reduction Act raises a big tax challenge for Finance Minister Chrystia Freeland

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Major changes in the bill set the stage for a trade standoff between the two countries over digital sales taxes

earlier this week, Canadian political and industry leaders were elated by the legislation’s climate provisions, which seem likely to provide a boost to this country’s electric vehicle industry. But other major changes in the bill set the stage for a trade standoff between the two countries over digital sales taxes.

Ms. Freeland, who is also Deputy Prime Minister, praised the OECD tax deal when it was announced last summer. But with the focus of U.S. politics shifting to the November midterm elections, and polls showing control of the House of Representatives could flip from the Democrats to the Republicans, some tax observers say the window for the U.S. Congress to adopt the OECD deal has now come and gone.

Elliot Hughes, a senior adviser at Summa Strategies who previously worked as a tax policy advisor to Ms. Freeland’s predecessor as finance minister, Bill Morneau, said it appears the U.S. Congress will not approve the OECD tax plan, which would set the stage for a significant policy dispute between Canada and the U.S.

The Inflation Reduction Act does include a new provision for a 15-per-cent alternative minimum tax on large corporations. The U.S. government estimates the measure will raise $300-billion in new revenue over the coming decade, but the tax is domestically focused and is substantively different from the proposed 15-per-cent global minimum corporate tax. The U.S. acknowledges it would not be in compliance with the OECD deal.

 

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curryb Why do you call freeland a finance minister ? She must have a degree in finance or something. Say won at a circus or something, hey. What a pathetic joke some Canadian politicians have become. justinjailtime

curryb This failed journalist is the worst finance minister this country has ever had. In what other industry can someone walk in with zero experience, zero knowledge, and be promoted to the top job? And folks are surprised she’s terrible. She is embarrassing herself and Canada.

Reads like liberals North & South aren’t working in the peoples best interest , the exact opposite actually.

Freeland’s facial expression tells it all……duh…what is inflation….duh!!!

Lol

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