Taxation & Budget

CATAAlliance members know that Canada's economy cannot grow, and they cannot succeed, if Canada does not have a competitive tax structure. The October 2000 mini-budget responded to almost every one of the tax cut recommendations which CATAAlliance had made. It made Canada's corporate and personal income taxes competitive with the US at least until the latest round of American cuts becomes effective.

As a result, CATAAlliance has focused on corporate capital taxes, which even the Department of Finance acknowledges have negative effect on innovation and investment. We are urging that they be eliminated in the 2003-4 federal budget.

In its February budget the government chose instead to eliminate them gradually, over five years. It failed to address the urgently needed changes to the SR&ED tax credit rules. Smaller members received one benefit, as the maximum level at which the small business tax rate of 12% applies was raised from $200,000 to $300,000.

CATAAlliance is pleased that several of the provinces have reduced or eliminated their capital taxes. We urge them to continue, to pick up the pace of reductions.

 

	Hon. Ralph Goodale Minister of Finance 2005-6 Pre-Budget Consultations  (Dec 14, 2004)
	Finance Committee 2004 Pre-Budget Consultations  (Nov 29, 2004)
	Letter to Minister of Finance, Hon. Ralph Goodale - Budget Recommendations  (March 8, 2004)
	CATAAlliance 2004/05 Budget Recommendations  (March 8, 2004 )
	2003/4 Budget Disappoints High Tech Industry (Feb 19, 2003  )
	Finance Committee 2003 Pre-budget Consultations (Aug 28, 2002  )
	Letter to Minister of Finance, Hon. John Manley - Capital Tax (June 6, 2002)
	Abolish Capital Tax (May 26, 2002)
	"Hold the line on spending" High Tech Industry Delivers Pre-Budget Recommendations  (Oct 2, 2001)
	House of Commons Standing Committee on Finance - Pre-Budget Consultations (Oct 2, 2001)
	Stock Option Advisory (Feb 13, 2001)
	Letter to Minister Martin - Tax treatment on stock options (June 27, 2000)