We envision a fair and robust tax system that is simple and efficient to navigate, competitive with other jurisdictions and supports long-term fiscal stability.
Our taxation system should not be a barrier to businesses starting or growing. Businesses must have clarity on how to navigate the system, as well as on the amount of tax they will be required to contribute. Opaque or confusing rules, created in part by the layering of tax regulation, can be cumbersome and serve as a barrier to success and certainty for small businesses.
In an era where capital is globally mobile, a competitive taxation system ensures we attract entrepreneurs to start businesses here and retain companies as they scale. As a result, this keeps jobs, innovation and economic opportunities here, which springboards us to greater long-term economic prosperity and resiliency.
The increased debt and deficit resulting from necessary COVID-19 relief programs and lower economic activity through the pandemic presents a challenge for governments in the years to come. While our national debt must be reduced to ensure fiscal stability, a debt strategy must be driven by increases in economic productivity, rather than borne by citizens and businesses through increased taxation.
As we emerge from the pandemic and begin to address our debt and deficit challenges, we have the opportunity to review our fiscal policy and taxation system to ensure competitiveness, simplicity and fiscal sustainability. Getting there requires an independent, non-partisan review of our tax system. A competitive, simple and fair tax system will result in savings for businesses, lower barriers for innovation and will position Canada as a more attractive place for foreign investment.
How we move forward
1. Continue to focus on long-term fiscal planning and key fiscal guardrails, particularly as we transition away from COVID-19 support programs.
By 2023, conduct a comprehensive, pan-Canadian independent review and deliver a report on Canada’s taxation system in consultation with industry stakeholders and sub-national governments, guided by principles of tax competitiveness, simplicity, fairness and neutrality.
3. Review and revise Canada's system of fiscal transfers
First, remove the per capita cap on fiscal stabilization payments. At the same, we must also decrease the revenue reduction threshold to three per cent from five per cent, and alter the fiscal stabilization formula to make provinces eligible for payments if the decline in resource revenues exceeds 40 per cent and non-resource revenues exceed three per cent.
Examine ways to improve transparency and understanding about how equalization and all federal transfers are delivered to provinces.
Fiscal sustainability and competitive taxation
What we're saying
Moving with the rate of change: the local impacts of a global corporate tax
Many of the world’s largest economies have agreed to change the rules on corporate tax. See what this change means for Calgary’s business community and where we’re headed in the weeks and months to come.