The Liberal government's second budget (Budget 2017) comes
during a period of exceptional global political and economic
uncertainty. Of particular importance from a Canadian economic and
tax policy perspective is the uncertainty about how the Trump
administration's agenda will unfold in the coming months. Will
its foreign and trade policies have a material impact on Canada,
and will the United States pursue a tax reform agenda that will
impose practical constraints on Canadian policy alternatives?
As the government attempts to advance its stated priorities of
innovation, job creation and infrastructure investment, there has
been much speculation in the weeks leading up to Budget Day (March
22, 2017) regarding the extent to which Mr. Trump's promises of
extensive U.S. corporate tax reform will influence the Liberal
government's approach to anticipated Canadian tax reforms. For
instance, the federal government's recent extension of its
federal tax credit review, which
