Mark Carney Launches Tax Cuts to Keep Tech Startups

Prime Minister Mark Carney launched a strategic initiative to prevent Canadian technology startups from relocating to the United States. The effort aims to reduce Canada's economic reliance on the U.S. amid tariffs and threats from President Donald Trump.

During the Canada Investment Summit in Toronto, Carney announced a significant expansion of investment tax write-offs for software, computer equipment, and fiber-optic cables. These measures are designed to lower Canada's marginal effective tax rate on new business investment from 13% to 6.4%, making it the lowest rate among G7 nations and half that of the United States.

As part of the summit, Radical Ventures unveiled a new late-stage growth fund with over $1 billion in capital. The fund is backed by major Canadian financial institutions and pension plans, including CPP Investments, the Public Sector Pension Investment Board, and the Healthcare of Ontario Pension Plan.