Feds focused on targeted competitiveness plan over corporate tax cuts: sources

Finance Minister Bill Morneau is looking at targeted measures to enhance Canada's competitiveness rather than broad-based corporate tax cuts, sources say.

For months, the federal Liberals have been under pressure from corporate Canada to respond to a U.S. tax overhaul that many business leaders warn put Canada at a deep disadvantage.

Morneau told reporters this week that he hadn't ruled anything out when specifically asked whether tax cuts would be part of his competitiveness plan.

But sources with knowledge of his plan, who spoke on condition of anonymity, say Morneau has been meeting with businesses across the country to discuss how to best deal with the U.S. changes with targeted measures.

Morneau intends to announce policies in his fall economic update to bolster Canada's competitiveness.

The Trump administration's early-2018 changes include big tax reductions for businesses and loosened regulations, which have created fears Canada has lost part of its edge as an investment destination.