This week’s announcements scaling back the small business tax package announced in July are a step in the right direction, but much more is needed if Canadian businesses are to compete, says the Canadian Chamber of Commerce.
“The changes announced this week are a relief to the business community, but business owners are still alarmed since much still remains to be defined. It’s time we had a conversation about taxes in Canada, and the Senate Standing Committee on National Finance’s hearings, which will take place across the country in the next few weeks, are the perfect starting point,” said Mr. Beatty.
“For our businesses to succeed, we urgently need to reform our complex, cumbersome and uncompetitive tax system,” said the Hon. Perrin Beatty, President and CEO of the Canadian Chamber. “Today’s announcement on venture capital, for example, will be a wasted opportunity if it isn’t accompanied by other tax measures sustaining it.”
Since the government unveiled its proposed tax measures in July, the Canadian Chamber has advocated a full and independent review of the tax system to make it less of a drag on Canada’s competitiveness. At the Chamber’s annual general meeting, delegates supported appointing a Royal Commission to conduct the review.
“We must stop simply tinkering with the tax system and undertake a comprehensive overhaul. We’re prepared to work with the government to find ways to make it simpler, less burdensome and fairer,” said Mr. Beatty. “We simply don’t have the luxury of falling farther behind as other countries reform their systems. We need to act now.”