Accelerate tax reform to improve Canadian companies' competitiveness



    OTTAWA, Aug. 27 /CNW Telbec/ - Canadian firms will compete more
successfully in global markets if governments accelerate the pace of business
tax reforms, the Conference Board argues in its latest publication on
restructuring the tax system to achieve sustainable prosperity.
    "Canadian firms are facing two major obstacles in their efforts to
compete globally, lagging productivity growth and the strong dollar," said
Glen Hodgson, Senior Vice-President and Chief Economist. "Broad business tax
reform would help Canadian firms invest in productivity-enhancing machinery
and equipment, give companies a competitive advantage in global competition,
and encourage investment in leading-edge environmental technologies."

    
    The six elements of business tax reform outlined in Accelerate Business
Tax Reform to Boost Canadian Competitiveness include:
       - Eliminating corporate capital taxes in all jurisdictions as soon as
         possible-capital taxes are an inefficient form of taxation and they
         discourage new investment;
       - Cutting corporate income tax to put Canada at the low end of the
         G7 range-the federal government's target of a combined federal-
         provincial corporate income tax rate of 25 per cent is a worthy
         goal, but it needs to be positioned as part of a comprehensive
         series of actions, including taxing carbon dioxide;
       - Smoothing corporate tax rate increases for small businesses-
         adjustments to tax rates and credits would encourage small
         businesses to grow;
       - Allowing the accelerated capital cost allowance for manufacturers to
         lapse after three years;
       - Introducing an environmental technology investment tax credit; and
       - Retaining federal interest deductibility for investments abroad
    

    This briefing, which is publicly available at www.e-library.ca, is part
of the Conference Board's series "Canadian Tax Reform for Sustainable
Prosperity" designed to foster public debate on tax reform.

    Previous briefings in the series include: Implement Sustainable Funding
for Canada's Cities; Use Green Taxes and Market Instruments to Reduce
Greenhouse Gas Emissions; Harmonize Consumption Taxes to Improve Economic
Efficiency; Provide Fair Tax Treatment for Canadian International Business;
and Should the Accelerated Capital Cost Allowance be Extended Any Further?




For further information:

For further information: Brent Dowdall, Media Relations, (613) 526-3090
ext. 448, corpcomm@conferenceboard.ca


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