Drop the Tax on Tools and Let Canada Build Again

Drop the Tax on Tools and Let Canada Build Again By Dale Jodoin Columnist Here’s something most Canadians do not realize. If a business in Ontario buys a $250,000 machine built in Ontario, it still pays sales tax on it. Even though it is Canadian made. Even though it will create Canadian jobs. Even though it stays inside Canada. We tax the very tools that build the country. In most provinces, businesses pay GST or HST on machinery. Yes, they can claim it back later through input tax credits. But they still pay it upfront. For a small shop, that can mean tens of thousands of dollars tied up before a single product is sold. At a time when we say we want more manufacturing and stronger productivity, why are we making it more expensive to invest? If we are serious about rebuilding Canadian industry, here is a simple starting point. No sales tax on machinery used to create Canadian jobs. No provincial barriers on Canadian made equipment. No internal trade walls between provinces. That is not radical. That is practical. Around three quarters of Canada’s exports still go to the United States. We can diversify. We should diversify. But we cannot replace that relationship overnight. Instead of endless tariff battles, focus on what we control. Lower the cost of production inside Canada. If a machine shop in Oshawa wants modern CNC equipment, the government should not take a cut. That machine raises output, improves quality, and creates skilled jobs. Why tax growth? If a food plant in Manitoba wants Canadian built packaging equipment from Quebec, it should move freely. No extra paperwork. No provincial slowdowns. It should not feel easier to trade internationally than between provinces. That is a problem we created, and we can fix it. Removing internal trade barriers would increase efficiency quickly. Canadian companies could sell to Canadians without friction. Skilled workers could move more easily. Equipment could cross borders without red tape. This is not ideology. It is math. Lower upfront costs. Encourage investment. Increase productivity. Support better wages. We hear about labour shortages. We also hear from young Canadians who cannot find strong career paths. That tells us we need better jobs, not just more low paying ones. Modern equipment changes the equation. A small manufacturer with advanced tools can compete. That company can afford to pay skilled workers properly. That is how you rebuild the middle class. Countries that focused on productivity did not weaken. They strengthened their industrial base. They exported machinery instead of finished goods. Canada has the skill and talent to do the same. But we also need to change how we talk about entrepreneurship. For too long, security has been tied to large institutions. Risk has been treated like something dangerous. Wanting to be your own boss can sound reckless. That thinking holds us back. There is nothing wrong with independence. Building your own company is not selfish. It is how communities grow. Schools should teach basic business skills. How to start a company. How to manage cash flow. How to price work. How to market a product. These are life skills. Encourage young people to create jobs, not just apply for them. Back it up with action. Create small industrial parks designed for startups. Affordable units. Short leases. Shared loading space. Simple zoning. Let a young welder rent a small shop without risking everything. Let a machinist test a new idea. Let a parts supplier start small and expand. Right now, cost is the biggest barrier. Rent. Fees. Permits. Upfront tax on equipment. Lower those barriers and you unlock energy that is already there. This is not about shouting across borders. It is about strengthening Canada from the inside. If tariffs remain at ten percent on some exports, fine. We cannot control every global move. But we can control our own policy. No sales tax on production machinery. No provincial trade barriers on Canadian equipment. No artificial walls between provinces. Encourage independence. Encourage skill. Encourage production. That is not surrender. That is strategy. We can talk tough. Or we can build smart. Let Canadians build again.