In addition, we have assessed the impact of changes to personal income tax rates in the US on Canada’s ability to attract and retain high-skills talent relative to the US, and examined the impact of the US tax reform on the attractiveness of conducting research and development (“R&D”) in Canada relative to the US. [...] In conducting our analysis, we have focused on the impacts of the changes to the US tax code that are most likely to affect investment in Canada, as follows: • The lowering of the statutory corporate income tax rate. [...] PwC | The Impacts of US Tax Reform on Canada’s Economy | 11 The state of Canadian competitiveness The following section reviews the state of Canada’s overall competitiveness in relation to the US. [...] The conference expects the US tax reform to significantly impact investment in the rest of the world. [...] Due to the larger size of the US market, the average size of firms in the US is larger compared to Canada.