Trump’s new tax threats make Flow-Through Shares for tech not just smart policy—but urgent national strategy.
By David E. Perry, Author of Revolutions Need Leaders
[Source: Globe and Mail, “Trump’s new bill threatens major tax increases for Canadian companies,” Clare O’Hara & Rudy Mezzetta, May 22, 2025]
As U.S. lawmakers push forward with Donald Trump’s so-called One, Big, Beautiful Bill, Canada’s innovation economy has just been handed a blunt wake-up call: our southern neighbor is preparing to penalize Canadian firms and investors with aggressive new tax measures, regardless of decades of trade alignment.
The legislation, narrowly passed in the U.S. House of Representatives on May 22, threatens to override the Canada-U.S. tax treaty and raise withholding rates on Canadian companies and individuals to as high as 50%, directly retaliating for Canada’s 2024 digital services tax (DST).
The message is clear: Canada needs to rethink how it finances and defends its economic future. And one of the smartest tools we already have—ready to deploy—is Flow-Through Shares (FTS) for the tech sector.
Why FTS for Tech Makes More Sense Now Than Ever Before
Capital Retention in a Hostile Environment
According to the Globe and Mail, Canadian investors could face up to $81 billion in additional U.S. taxes over seven years if this legislation becomes law.
Instead of losing that capital to Washington, Canada can redirect it into early-stage innovation right here at home. FTS allows individuals to deduct startup expenditures from their income taxes, making risk capital more accessible and domestic investment more rewarding.
In a world of economic aggression, capital becomes a weapon. FTS turns Canadian capital into a competitive shield.
Retaliation Without Recession
The U.S. tax move targets Canada’s DST—but capitulating under pressure sets a dangerous precedent.
FTS offers a non-confrontational, pro-growth response: it doesn’t violate any trade agreement, and it builds Canada’s capacity without lobbing a single rhetorical grenade.
It’s economic judo: using momentum against the attacker while strengthening your stance.
Protect Public Institutions and Pension Funds
Trump’s bill also removes U.S. tax exemptions for sovereign entities—including the Canada Pension Plan Investment Board and First Nations communities.
By expanding FTS to tech, we offer institutional and community funds a way to invest in Canadian growth while sheltering capital from punitive foreign taxes.
- Support Tech Executives and Attract Leadership Talent
As capital shifts homeward, so too must leadership. FTS for tech will:
- Accelerate the rise of next-gen Canadian CEOs and CFOs
- Attract diaspora talent returning from abroad
- Drive governance and executive maturity in startups much earlier
In a world where capital is constrained and growth is politicized, leadership becomes the decisive edge.
Turn Crisis Into Competitive Advantage
The U.S. tax threat will harm not only companies—it will shake investor confidence in cross-border planning. Canada must send a counter-signal: we back our founders, we fund innovation, and we believe in building an IP-rich, globally competitive economy.
FTS is the fastest way to prove it.
Take Action Now: Canada’s Future Depends on It
Trump’s tax threats are real. The capital at stake is massive. But Canada has a choice—and a proven tool ready to deploy.
We’re calling on policymakers, investors, founders, and citizens to stand with us in supporting Flow-Through Shares for tech.
- Add your name
- Share your support
- Help us get this across the finish line
Visit CanFlowThrough.com/supporters to join the movement.
Canada doesn’t need to wait for permission to invest in its own future. It just needs leadership.
#CanFlowThrough #InvestInCanada #FTS #LeadershipNow #RevolutionsNeedLeaders
The Time Is Now
With the White House expected to sign the bill by July 4th, Canada cannot afford to delay.
We need to:
- Extend Flow-Through Shares to tech before July 1
- Educate the investment community on how to leverage this vehicle
- Reframe the narrative from defense to opportunity
The U.S. is setting up economic walls.
Let’s build ladders, tunnels, and launchpads. Now.
👉 www.CanFlowThrough.com
Add your name. Share it. Demand better.
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