OTTAWA, Jan. 26 /CNW/ - Following through on the business tax reduction
agenda is critical to moving from government—and Canadian
taxpayer-funded—stimulus to a private sector-led recovery, Canadian
Chamber of Commerce President and Chief Executive Officer, Hon. Perrin
Beatty, told his membership today.
In a message to the 420 local chambers of commerce and boards of trade,
representing 192,000 businesses of all sizes across Canada, Mr. Beatty
said improving the business climate to trigger private sector
investment is the most significant economic issue now confronting
"We have a national plan, crafted and endorsed by federal, provincial
and territorial governments of various political stripes, to set the
Canadian business tax rate at 25.7 per cent in 2013," added Mr. Beatty.
"This rate would make Canada a very competitive environment in which to
do business and benefit us in every sector and region. The alternative
is an increase in taxes. No one believes raising taxes would be good
for growth or employment. It would be like giving the economy a blind
Mr. Beatty told Canadian Chamber members that Canada's businesses need
to speak out on tax competitiveness. "All Canadians lose when the
political parties squabble over this issue. Our job is to help secure
sustainable economic growth. We have a weak recovery underway, and we
need the help the business tax strategy provides. The issue is too
serious to be left to political game players."
"What is particularly troubling is that some politicians are proposing
both higher business taxes and more spending. Tax and spend policies
will do nothing to reduce the deficit."
"Government stimulus was important during the crisis, but it's not the
basis of real economic growth," added Mr. Beatty. "Sustainable growth
requires the private sector investment that can generate new jobs and
federal revenues to pay down the deficit. The current tax plan, which
was supported by both Liberal and Conservative parliamentarians, is
essential for that investment."
In 2007 the federal government announced phased reductions in corporate
income taxes with the goal of setting the combined federal and
provincial rate at 25.7 per cent in 2013. Each federal budget since
that announcement has featured measures to implement that plan.
"In its winter Business Outlook Survey, the Bank of Canada reported that 44 per cent of Canadian firms expect
to invest more than they did last year in their businesses. If
parliamentarians renege on their promise to continue with promised tax
decreases, you can be certain that many businesses will not be able to
pursue their plans," said Mr. Beatty.
The Canadian Chamber of Commerce is the vital connection between
business and the federal government. It helps shape public policy and
decision-making to the benefit of businesses, communities and families
across Canada with a network of over 420 chambers of commerce and
boards of trade, representing 192,000 businesses of all sizes in all
sectors of the economy and in all regions.
SOURCE Canadian Chamber of Commerce, The
For further information:
Director, Public Affairs
The Canadian Chamber of Commerce
613.238.4000 ext. 231