Ottawa, ON…CATAAlliance, Canada’s One Voice for Innovation lobby group, has responded to the government’s October 3 Press release closing tax consultations with the statement, “ Trudeau Liberals Still Don’t Get It, So Canadians Get an Unfair Tax System. ”
In its October 3 release the government thanked the thousands of Canadians who engaged in this important discussion, noting that Canadian views are being carefully considered. Key guiding principles were articulated in the release.
CATA took issue with some of the key principles upon which the government said it will base its next steps.
Speaking for CATA’s Innovation Leadership Council, CATA CEO, John Reid said, “ I think we can agree that tabling a poorly written discussion document and proposed legislation in the middle of summer got us all off to a bad start. We can also agree that much uncertainty has been needlessly created for all businesses which delays investment and encourages capital flight. “
He added, “The lack of a coherent and comprehensive review to deal with any perceived deficiencies is a major impediment to realizing effective amendments of an exceedingly complex piece of legislation. To take poorly drafted and ill-considered amendments and tinker with them to ostensibly appease the more vocal opponents is a poor process for ensuring effective, fair, rational and workable tax legislation. “
Trudeau Liberal Still Don’t Get It, So Canadians Get an Unfair Tax System
Let’s look at what the government has said and how it affects us all:
“Support small businesses and their contributions to our communities and economy.”
No mention of the recognition of risk.
“Keep taxes low for small businesses, and support owners to actively invest in their growth, create jobs, strengthen entrepreneurship and grow our economy.”
No mention of allowing them to accumulate retirement savings in a fashion comparable to government employees.
“Avoid creating unnecessary red tape for hard-working small businesses.”
“Recognize the importance of maintaining family farms, and work with Canadians to ensure we don’t affect the transfer of a family business to the next generation.”
What about other businesses? Construction? Services? Removal of Sector Based Bias, Why just farms?
“Conduct a gender-based analysis on finalized proposals, to ensure any changes to the tax system promote gender equality. About 83 percent of passive investment income is earned by Canadian-controlled private corporation (CCPC) owners making more than $250,000. About 70 percent of these individuals are men.”
Equity or equality?
Reid concluded, “ We need to avoid the politics of envy – pitting Canadians one against the other by reason of the failure to establish an open and fresh dialogue about the underlying principles of fairness prior to wholesale amendments of one of the most complicated pieces of legislation in the Canadian legislative landscape. Once we can speak a common language about these issues and develop some common understanding of the true facts surrounding the competing interests then maybe we can create a workable legislative amendment that respects the contributions of every sector with some degree of balance rather than pejorative mischaracterization. These are not robust economic times and surprisingly little misjudgment can have dramatic impacts. We should be guided by the well-worn axiom: less haste, more speed.”
Quotes (CATA Innovation Leadership Council)
” The deliberately short time frame allowed for consultation, effectively forestalled any serious detailed analysis. Then when combined with facile nostrums by way of response, does not suggest serious analysis or deliberate legislative process. Rather, this leaves the impression of a poor policy combined with inadequate assessment of the impacts. The original documentation suggested a minor tax bill of $250 million while testimony by Department of Finance officials before the Senate stipulated that the exemption for intergenerational transfer of businesses had a price tag in excess of $1 billion – something just doesn’t add up. ”
” Once we can speak a common language about these issues and develop some common understanding of the true facts surrounding the competing interests then maybe we can create a workable legislative amendment that respects the contributions of every sector with some degree of balance rather than pejorative mischaracterization. These are not robust economic times and surprisingly little misjudgment can have dramatic impacts. We should be guided by the well-worn axiom: less haste, more speed.”
” We need to start again, Press the Reset Button, where all parties look at how to best work together to create rational fact based tax policies, follow responsible fiscal policies and better coordinate and deliver incentive programs.”
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The Canadian Advanced Technology Alliance (CATAAlliance) is Canada’s One Voice for Innovation Lobby Group, and is crowdsourcing ideas and guidance from thousands of opt in members in moderated social networks in Canada and key global markets. (No Tech Firm Left Behind)