NDP Calls for 100 percent Taxation of Stock Option Gains: Wrong Direction for Moving Canada to First Place as a Competitive Innovation Nation: Mobilize today
September 28, 2015
Dear Community members
Under a proposed NDP election platform plank, gains from exercising stock options would be fully taxed. Currently, only 50 per cent of the gains from stock options are subject to tax, which is the same capital gains tax rate that investors pay when they sell shares.
For small enterprises, that are often cash poor with high risk exposure, such a change would make it more difficult to attract and keep the talent they need to drive forward innovation and commercial success.
Employees accept lower compensation rates in exchange for the stock options they receive and thus the potential for valuable equity when the enterprises is successful in the marketplace.
Such a shortsighted approach negatively affects the Canadian startup business climate, at a time when our community is looking for all ways to move Canada to number one ranking for innovation and competitiveness.
The NDP proposal effectively reduces the financing for innovation and diminishes our eco system; we are calling on all community members to raise this issue with their local media, MPs and other key influencers.
CATA’s National Leadership Council
John Reid, CATA CEO
Ps Members can make use of various briefing materials on innovation and competitiveness at: http://www.cata.ca/Media_and_Events/Press_Releases/cata_pr09011501.html