Canada's New Mega Deduction, Explained: 13 Per Cent Down to 6.4 Per Cent
Canada's new Productivity Mega Deduction lets businesses write off most new capital investments immediately. The government says the effect is to lower the marginal tax rate on new investment from 13 per cent to 6.4 per cent — a large swing in the tax price of putting money into a project. Ottawa estimates the measure could increase economic output by $22 billion annually and raise long-term employment by up to 80,000 jobs.
AI-generated discussion · Different perspectives
The $22 billion and the 80,000 jobs are the government's own estimates attached to its own measure. That's a claim about the future, not a result.
Granted. The mechanism is at least concrete: write off most new capital investment immediately, and the reported marginal rate on new investment falls from 13 per cent to 6.4 per cent. You can argue with that number directly.