Francis Fong, managing director of TD Economics, told BNN Bloomberg that Canada is experiencing a silent brain drain of skilled workers, entrepreneurs and STEM graduates. The new report links the exodus to U.S. work visas, aggressive tech recruitment and higher compensation. Losses span doctors, founders and engineers moving south for better pay and career growth. The trend echoes past decades, now focused on tech hubs.

Fong points to Canada’s tax architecture as a core driver. Top personal high marginal tax rates exceed 50 percent in Ontario, British Columbia and Quebec, hitting at incomes around $275 k, while comparable U.S. rates apply only above $700 k to $1 million. These fiscal differentials also discourage foreign investment in Canadian startups. This disparity makes high earners feel penalised, prompting entrepreneurs to seek lower‑tax jurisdictions.

Beyond taxes, Canadian firms struggle to scale, facing limited venture capital and a regulatory burden that hampers growth. States such as Texas and Florida lure talent with expansive markets and fewer fiscal constraints. Retaining top talent will require coordinated policy reforms, stronger investment pipelines and incentives that make domestic expansion financially attractive. Without such changes, Canada risks falling behind its northern competitor.