By Christine Dobby
(Bloomberg) — Canada is “absolutely not” competitive on tax policy, said Bank of Montreal Chief Executive Officer Darryl White, who called on the federal government to cut taxes even if it means running a larger deficit.
With trade issues dominating the national debate, tax incentives for investment aren’t getting enough attention, White said Wednesday at the Toronto Global Forum.
Prime Minister Mark Carney’s government cancelled an unpopular increase to the capital-gains inclusion rate, but it needs to go further, White said, such as by letting businesses write off capital assets sooner and lowering corporate and personal taxes.
“We have a little bit of fiscal capacity to play with here,” he said. While he’s normally a supporter of balanced budgets, “this is a moment where — throw that out the window and take a little bit more risk.”
He said Canada should seize the momentum created by U.S. President Donald Trump’s trade policies, which have prompted a rethink of internal barriers to trade and Canadian exporters’ dependence on the U.S. market.
“Are we letting a crisis go to waste? Are we competitive on tax? I know the answer to that is, ‘Absolutely not,’” he said.
In July, the federal government cut the country’s lowest income tax rate by one percentage point.
White, who’s led the country’s third-largest bank by market capitalization for almost eight years, said capital will “flow to the point of least resistance” — and Canada must make itself a destination. Other top executives, including other bank CEOs, have also pressed Ottawa for tax reform.
Carney’s government is set to unveil its first budget on Nov. 4, with the federal deficit expected to climb to at least $70 billion. National Bank of Canada Chief Economist Stefane Marion predicts a shortfall of about $100 billion, saying Ottawa will likely deliver a “stimulative budget.”
“We do have some fiscal room when you compare Canada to the rest to the world,” Marion said at a Bloomberg event last week. “We should not waste it.”
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Last modified: October 15, 2025
