Ottawa, March 29, 2010: Canada’s largest business group expressed its concern today with the position taken by the Liberal party at the Canada at 150 Conference to cancel previously-announced reductions to taxes on businesses in a letter sent to Michael Ignatieff.

According to press reports and the material made available on the Liberal party’s web site, the party has opted for new spending as opposed to improving Canada’s tax competitiveness at a time when Canadians are recovering from a major recession and when the global competition is becoming fiercer every day. “If the Liberals are saying they would take $5-billion to $6-billion that otherwise would have been used to create new jobs and improve Canada’s competitiveness and spend it in other areas, then this entirely the wrong direction to go. It is a very bad message to send,” says Perrin Beatty, President and CEO of the Canadian Chamber of Commerce.

The letter states that the average general corporate income tax rate in Canada is about 32 per cent (federal plus provincial) compared to an OECD average rate of around 26 per cent. In addition, other countries will continue to improve their tax competitiveness, with the risk that Canada will fall further behind.

“Punishing business with a $5-6 billion tax burden is not the way to encourage new investment,” finished Beatty.

The letter from the Canadian Chamber sent to Michael Ignatieff today can be viewed here.

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