Implementing Estonia's Tax Model to Boost Canada's Economy

Estonia's innovative tax system, which exempts corporate profits from taxation until they are distributed to shareholders, offers a model Canada could adopt to enhance its economic and productivity performance. This approach encourages significant investment and reinvestment, fostering entrepreneurial startups and simplifying tax administration. The system has led to impressive economic growth in Estonia, with a high rate of business startups and advancements in information, communication, and technology sectors. Adopting such bold and forward-thinking tax policies could help Canada attract investment, encourage entrepreneurship, and improve overall economic outcomes.

Prime Minister Justin Trudeau looks on as Deputy Prime Minister and Minister of Finance Chrystia Freeland speaks at a press conference in Ottawa, 2023. PHOTO BY SEAN KILPATRICK/THE CANADIAN PRESS FILES