Now that Justin Trudeau will be forming a new Liberal majority government, entrepreneur Kevin O鈥橪eary says there are 鈥済rave concerns鈥� within the business community about his promised tax hikes for the wealthiest Canadians.
O鈥橪eary said some are concerned about a possible 鈥渂rain drain鈥� of entrepreneurs, business owners, doctors and lawyers who make enough money to fall under Trudeau鈥檚 proposed new tax bracket.
During the election campaign, Trudeau said he would create a new tax bracket of 33 per cent for those earning more than $200,000 a year. That would allow the government to lower the federal income tax rate to 20.5 per cent on incomes between $44,700 and $89,400, Trudeau said.
鈥淲hen you get to a point where you鈥檙e taking more than half a person鈥檚 income, they tend to start making economic decisions about where they live and where they build businesses,鈥�
He said some high-earners and businesses may decide to relocate to the U.S.
鈥淭hat鈥檚 one grave concern being discussed in the business community.鈥�
O鈥橪eary said he hopes that Trudeau鈥檚 advisors will warn him about a possible brain drain and other 鈥渂ad鈥� outcomes.
He also said that the 鈥渓argest question鈥� after Monday鈥檚 election is what Trudeau will do about energy projects.
O鈥橪eary said Trudeau has been a 鈥渕oderatist鈥� when it comes to pipelines.
Trudeau has backed the proposed Keystone XL pipeline from the Alberta oilsands through the U.S. to Nebraska, saying the project is in the public interest. He has said that he won鈥檛 fully support the Energy East pipeline through six provinces until more public consultations are held. And he has opposed the Northern Gateway pipeline from Alberta to the B.C. coast.
O鈥橪eary said investors are anxious to find out how Trudeau鈥檚 energy policy will shape up once he assumes office.
鈥淲hat Justin decides to talk and do about that is of great interest of billions of dollars,鈥�
O鈥橪eary said he thinks that Trudeau 鈥渋s going to enjoy the result of an upswing鈥� in Canada鈥檚 economy, which recently emerged from a technical recession.
鈥淚 think we鈥檙e in good shape here,鈥� O鈥橪eary said. 鈥淚f he doesn鈥檛 get too crazy with the policies and keeps the course, he may attract lots of foreign capital. He鈥檚 the kind of leader that people are fascinated with right now.鈥�
