This op-ed was published in the January 2017 of Business in Calgary and Business in Edmonton Magazines and is available for other outlets to publish, free of charge.

Our neighbours to the south have elected a new president, Donald Trump, and in some ways, his proposed policies say “open for business.” But what does the new regime mean for Edmonton’s business community?

For starters, depending on the direction taken, it’s possible that the Trump administration could negatively impact Canadian trade with the U.S.

This, too, could be a concern for American businesses. However, they can take solace in the fact that Trump promised to lower the business tax rate from 35 per cent to 15 per cent – a dramatic decline.

That could be a very good news story for American tax revenues. We know that at least a segment of the business tax base is mobile, especially at the high end.

For Americans who had chosen to take their money out of the country, the U.S. may now look like a much rosier place to file their taxes. Lowered income taxes as a result of Trump’s promise to collapse the seven income tax brackets into three may have similar effects, attracting the wealthy to file their taxes at home.

Canada could benefit from economic growth sparked in the U.S. But by the same token, these tax changes could have a magnetic effect, drawing Canadian businesses and would-be investors down south. Certainly, a dramatically reduced business tax rate makes Canada less competitive, as was noted in an RBC report.

Perhaps we should politely twist the meaning of an oft-used phrase in the U.S. election: “When they go low, we go high.” When it comes to tax rates, when they go low, we should go lower.

At the very least, we shouldn’t be raising taxes.

At the federal level, Prime Minister Trudeau lowered income taxes in the middle bracket, but increased income taxes at the top. Provincially, Premier Notley also increased income taxes, eliminating the single-rate income tax.

Premier Notley raised corporate taxes by twenty per cent almost immediately upon entering office. Her small business tax cut was welcome, but was easily offset by other tax and wage hikes. All of these tax hikes should be reconsidered if these governments are serious about ‘creating jobs’ – something they should quickly realize is not actually the role of government.

Both the federal and provincial governments must take a more critical look at their multi-billion dollar carbon taxes. The U.S. – the world’s second largest contributor to greenhouse gas emissions and Canada’s nearest competitor for investment – isn’t imposing a carbon tax and has vowed to scrap the Paris climate commitments. Canada’s incoming $50/tonne carbon tax will now impact our competitiveness to a greater degree.

At the municipal level, Mayor Iveson increased non-residential property taxes by 2.1 per cent, and residential property taxes increased by an even greater amount. A 2016 poll by the Canadian Federation of Independent Business showed Edmonton dismally ranked 107th on a list of the best places in Canada to start and grow a business.

Canadian and Albertan policies, as well as those crafted right here in Edmonton, do not exist within a vacuum, and they should not be modeled as if they do. With incoming U.S. policies opening the door to business, policymakers should prioritize how they are going to attract and retain job-creators here at home.