Budget 2022 responds to current issues, lacks long term outlook
Calgary, April 7, 2022 – The budget tabled by the federal government prioritizes economic recovery, energy transformation and climate change, and affordability for Canadians. Budget 2022 includes key investments in supply chains, carbon capture and storage, critical minerals, immigration, and small businesses. However, it falls short of outlining a clear vision for Canada’s future economy as the destination of choice for talent, innovation, and investment.
“Investment tax credits for carbon capture and storage will help to support the energy sector’s ability to achieve their net zero goals and ties back to the recently announced Emissions Reduction Plan. Commitments to strengthening supply chains will address some of the pressing challenges affecting all sectors. A change to small business tax rates will support the growth of small business in Canada,” says Deborah Yedlin, President and CEO of the Calgary Chamber of Commerce. “Lacking is a cohesive plan and game-changing investment to define and direct Canada’s place in our global economic future.”
Budget 2022 is a step in the direction, and the following investments and initiatives will advance our economic recovery:
Extending tax break eligibility for small businesses from $15 million in taxable capital to $50 million to support businesses as they grow.
$3.8 billion over 8 years, and a 30 per cent tax credit to support the development of Canada’s critical minerals, allowing Canada to responsibly extract essential materials.
$317.6 million in new, ongoing funding for the Immigration Levels Plan to support the processing and settlement of new permanent residents to Canada.
$450 million over five years to alleviate stress on supply chains through investments in transportation infrastructure and technology.
An Investment Tax Credit of 60 per cent for direct air capture, 50 per cent to promote the development of carbon capture, and 37.5 per cent for transportation, utilization, and storage.
$500 million in military aid and support for immigration and refugees seeking to enter Canada, particularly with the ongoing crisis in Europe and elsewhere globally.
$48.2 million over three years to support a foreign labour program and additional supports to advance clean technology in the agriculture sector.
$15 billion over five years in repurposed funding towards the Canada Growth Fund to decrease investment risk and accelerate the adoption of new technologies.
Not all Canadians, or Canadian businesses, are recovering from the pandemic at the same rate, and are discouraged by the lack of attention to the following priorities:
An overarching cross-sectoral strategy for Canada’s long-term economic prosperity.
Further supports for hard-hit sectors, such as the hospitality and tourism industry.
Debt relief for small businesses that utilized programs like the Canada Emergency Business Account.
Additional support to attract talent and alleviate the labour shortages businesses are facing across the county and all sectors.
A regulatory framework that supports investment and certainty to ensure public and private capital can be deployed effectively and promptly.
Potential implications of increased taxation on particular sectors, like financial institutions that Canadians rely on for access to capital, financial advice, and returns on personal investments.
The Calgary Chamber will continue working closely with the federal government to ensure the path to Alberta’s economic recovery is inclusive and aligned with the challenges and opportunities faced by the business community.
The Calgary Chamber looks forward to hosting the Honorable Randy Boissonnault, Associate Minister of Finance and Minister of Tourism, for an in-person address to the business community on April 11, focused on the implications of Budget 2022.
The Calgary Chamber is an independent non-profit, non-partisan business organization. For 131 years the Chamber has worked to be the convenor and catalyst for a vibrant, inclusive, and prosperous business community, for the benefit of all Calgarians.