Related News: "Fiscal and Tax Policy"
The federal government’s agreement in principle with the New Democratic Party to roll back corporate tax cuts sends a message to the world that Canada is losing interest in competing for investment and jobs, says the Canadian Council of Chief Executives (CCCE).
The tax cuts of the past five years have had a dramatic impact in stimulating job creation, raising incomes and boosting tax revenue for governments, but as Prime Minister Paul Martin himself has acknowledged, the world is changing quickly and radically, said the CCCE, a non-partisan organization composed of the chief executives of 150 leading Canadian enterprises.
“Governments around the world increasingly are turning to tax policy as the most effective tool in their arsenals for attracting new investment, accelerating economic growth, raising family incomes and funding social programs,” said CCCE Chief Executive and President Thomas d’Aquino.
The C.D. Howe Institute noted in a new study released today that the corporate tax cuts in the 2005 budget combined with those of earlier years will stimulate $56 billion in capital investment by Canadian businesses, raising Canada’s Gross Domestic Product by $5 billion a year and creating 340,000 jobs at little fiscal cost to Canadian governments.
Since 1997, 25 of the … Read more »
While expressing concern about the overall rate of spending growth in the federal budget tabled yesterday by Finance Minister Ralph Goodale, the Canadian Council of Chief Executives (CCCE) welcomes its bedrock commitment to fiscal prudence, its recognition of the importance of more competitive tax rates and its allocation of significant new resources to Canada’s military and international presence.
“Sound fiscal policy, debt repayment and tax cuts have been key drivers of the strong economy that has enabled the government to make so many commitments to improving the quality of life of Canadians. We need to keep reinvesting in our economy in order to sustain these commitments, and the budget takes some important steps in the right direction,” said CCCE President and Chief Executive Thomas d’Aquino. Key elements of the budget include:
Competitive corporate tax rates are the most cost-efficient way for governments to attract business investment and create jobs. The budget notes that falling corporate income tax rates in the United States threaten to erode Canada’s modest advantage in this area, and responds with the elimination of the corporate surtax, imposed to fight deficits that have not been seen in eight years, and with a further reduction of … Read more »
The following are comments by David Stewart-Patterson, Executive Vice-President of the Canadian Council of Chief Executives (CCCE), on the 2005 Federal Budget tabled today in the House of Commons by Finance Minister Ralph Goodale:
“The biggest concern for business leaders is the overall rate of spending growth. Much of the new spending is going to meet very important priorities, from improving health care to strengthening our armed forces. But overall program spending is up by 12 percent this year and has grown 44 percent over the past five years. I doubt that many Canadians have seen their paycheques rise that fast, and unless Canada continues to enjoy strong economic growth, I am worried that the government may not be able to sustain the many commitments it has made to improving social programs.
“I am encouraged that the government has recognized the importance of a competitive tax regime, and in particular of keeping Canadian corporate incomes tax rates significantly below those in the United States in order to attract more investment and jobs. The elimination of the corporate surtax and the further reduction of two percentage points in the corporate income tax rate, starting in 2008, are important steps forward. These … Read more »
The following are comments by Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), in response to the Autumn 2004 Economic and Fiscal Update by Minister of Finance Ralph Goodale before the House of Commons Standing Committee on Finance:
“Finance Minister Ralph Goodale was right on the money when he said that running surpluses, paying down debt and cutting taxes have given Canada the best economic and job growth in the G-7. What is disappointing is how little he said about what needs to be done to reinforce this virtuous circle.
“Despite all the good news Canadians are hearing today, the minister recognized that Canada’s economy faces some real risks. The sharp rise in the Canadian dollar is slashing profits for many exporters even as they face an urgent need to invest in new technology to improve their productivity. Meanwhile, high oil prices together with huge trade and budget deficits and rising interest rates in the United States threaten to cut demand in Canada’s biggest export market.
“The degree of uncertainty in the economic outlook means that Finance Minister Goodale is absolutely right to stick to his guns in defending fiscal prudence and the benefits of … Read more »
A new round of federal tax cuts is needed to ensure that the Canadian economy can withstand the pressures of a rising Canadian dollar, more intense competition and a looming global slowdown, Canada’s business leaders say.
“In recent years Canada has enjoyed an extraordinary run of robust economic growth, but the good times will not last forever,” Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), said in a speech today to a conference in Ottawa on Canadian international policy. The CCCE is composed of the chief executives of 150 leading Canadian corporations and is devoted to strengthening the country’s economy and society through the development of sound public policy.
Expressing deep concern about surging fiscal and trade deficits in the United States, growing protectionism, instability in oil producing states and the threat of global terrorism, Mr. d’Aquino called for a concerted strategy for enhancing Canada’s future economic growth. “Smart tax policy is the key to sustaining and improving the quality of life of Canadians. It is also the most effective way for Canada to achieve a significant competitive advantage in the global struggle to attract business investment and jobs.”
Mr. d’Aquino’s call for a … Read more »
The following are comments by Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), after this morning’s unveiling of the new federal Cabinet by Prime Minister Paul Martin:
“The Prime Minister has retained a solid core of experienced ministers and added some excellent new talent in key portfolios. The new Cabinet points to a government that can be expected to proceed constructively in building on Canada’s economic strengths while maintaining stability and exercising sound fiscal management.”
“We look forward to working with Prime Minister Martin and his new team in pursuing the Council’s priorities in the areas of spending review and reallocation, tax policy, health care, the environment, regulatory reform, parliamentary reform, Canada-United States relations and Canada’s global influence and competitiveness.”
Fiscal Prudence and Sound Economic Policies Must Be Top Priorities of Canada’s New Parliament, Business Leaders Say
Canada’s most influential business organization, the Canadian Council of Chief Executives (CCCE), said this morning that fiscal prudence and sound economic policies must be the top priorities of Canada’s new parliament.
This message was accompanied by a six-page memorandum addressed to Prime Minister Paul Martin and the three other leaders of the major political parties.
“Canada’s economic record of the past decade has been the envy of the world,” says Thomas d’Aquino, the CCCE’s President and Chief Executive. “Strong economic growth, low inflation, robust job creation and steadily improving productivity have generated back-to-back federal surpluses and ever-rising tax revenues. These in turn have financed improvements in healthcare, social spending, defence and security.”
The London-based magazine The Economist recently referred to Canada as “an unfinished masterpiece,” Mr. d’Aquino noted. “Irresponsible spending and policies that would hurt investment and entrepreneurship will guarantee that the masterpiece will not be finished,” he said.
He added that Canadians of all walks of life have the most to lose if Canada’s new parliament fails to adhere to a responsible program of spending restraint, competitive tax rates, smarter regulation, improved Canada-United States relations and sound trade and investment policies that promote economic growth and job creation.
Referring … Read more »
The federal budget tabled today by Finance Minister Ralph Goodale restores a welcome tone of prudence to the nation’s finances, says the Canadian Council of Chief Executives (CCCE).
“The decision to return the contingency reserve and prudence factors to at least $4 billion a year, the commitment to reduce the federal debt to GDP ratio to 25 percent within 10 years and a long overdue pause in the rampant growth of program spending will all help to maintain Canada’s fiscal leadership and economic competitiveness at a time of considerable global risk and uncertainty,” said the CCCE’s President and Chief Executive, Thomas d’Aquino.
The federal government rightly acknowledges the two main risks to the Canadian economic outlook: the uncertainty surrounding the impact of the rapid rise in the Canadian dollar and the sustainability of the United States economic recovery.
Mr. d’Aquino welcomed the budget’s sharp drop in spending growth. Direct program spending, which jumped by 15 percent during the current fiscal year, will grow by just 2.3 percent in fiscal 2004/05 before moving back up to 4.9 percent in 2005/06. Within the modest spending proposals included in the budget, the Council supports the emphasis on measures to increase access to learning, … Read more »
The following are comments by Thomas d’Aquino, President and Chief Executive of the Canadian Council of Chief Executives (CCCE), after today’s Speech from the Throne:
“The Canadian Council of Chief Executives supports many of the goals outlined in the Speech from the Throne, including changing the way things work in Ottawa, restoring trust and accountability, and cooperating more effectively with provincial governments in improving the quality of public health care, increasing access to lifelong learning, and shaping a new deal for cities.”
“We agree that to build a fairer society, we need a stronger economy. What the Speech fails to acknowledge is that economic growth must be driven primarily by a healthy and innovative private sector, not by government programs. Business investment and job creation depend on competitive taxation and smart regulation.”
“We are worried that this lengthy agenda will drive further rapid and unsustainable growth in federal spending. We are pleased, however, by the confirmation that the government is ‘unalterably committed to fiscal prudence’ and ‘will not spend itself into deficit.’”
“We endorse the commitment to a more sophisticated approach to the Canada-United States relationship. We also support the government’s plan to strengthen Canada’s role in the world and … Read more »
PInterviewed on Report on Business Television after the CCCE’s New Year Members’ Meeting in Toronto, Mr. d’Aquino said it would be folly for business leaders to assume that Mr. Martin, a former CEO of Canada Steamship Lines, will cater to the interests of the business community. /Pbr /
P class=MsoNormal 0cm 0pt">“We should be under no illusions that somehow life is going to be easy for us or that we’re just going to get whatever we want,” Mr. d’Aquino told ROB-TV host Amanda Lang. “Now the business of Paul Martin is politics, not business, and therefore we should not be running around assuming that we have an enormously business-friendly Prime Minister. We’re still going to have to make our case, have to argue our briefs, as well and perhaps even harder than in the past.” P class=MsoNormal 0cm 0pt">Play Video (10 mins)