Capital moves more easily than labor. Not only are there loopholes to not pay taxes, they can also shift operations so that profits are realized in a different

Capital moves more easily than labor. Not only are there loopholes to not pay taxes, they can also shift operations so that profits are realized in a different jurisdiction and the money goes there instead. Despite large cuts in corporate income tax and a reduction in consumption tax coupled with temporary increased spending, Canada's debt to GDP ratio is where it was before the '08 crash. The debt increased about 50% during this time, but so did the GDP. Companies stayed in Canada/came to Canada and with growth came more tax revenue. The fear was that the books would never get near balanced again with drastically reduced tax rates, but 2014/2015 was roughly balanced. (Arguably about -$3 billion for the whole year)