Ottawa, January 26, 2011-Following through on the business tax reduction agenda is critical to moving from government-and Canadian taxpayer-funded-stimulus to a private sector-led recovery, Canadian Chamber of Commerce President and Chief Executive Officer, Hon. Perrin Beatty, told his membership today.

In a message to the 420 local chambers of commerce and boards of trade, representing 192,000 businesses of all sizes across Canada, Mr. Beatty said improving the business climate to trigger private sector investment is the most significant economic issue now confronting Canada.

“We have a national plan, crafted and endorsed by federal, provincial and territorial governments of various political stripes, to set the Canadian business tax rate at 25.7 per cent in 2013,” added Mr. Beatty. “This rate would make Canada a very competitive environment in which to do business and benefit us in every sector and region. The alternative is an increase in taxes. No one believes raising taxes would be good for growth or employment. It would be like giving the economy a blind side hit.”

Mr. Beatty told Canadian Chamber members that Canada’s businesses need to speak out on tax competitiveness. “All Canadians lose when the political parties squabble over this issue. Our job is to help secure sustainable economic growth. We have a weak recovery underway, and we need the help the business tax strategy provides. The issue is too serious to be left to political game players.”

“What is particularly troubling is that some politicians are proposing both higher business taxes and more spending. Tax and spend policies will do nothing to reduce the deficit.”

“Government stimulus was important during the crisis, but it’s not the basis of real economic growth,” added Mr. Beatty. “Sustainable growth requires the private sector investment that can generate new jobs and federal revenues to pay down the deficit. The current tax plan, which was supported by both Liberal and Conservative parliamentarians, is essential for that investment.”

In 2007 the federal government announced phased reductions in corporate income taxes with the goal of setting the combined federal and provincial rate at 25.7 per cent in 2013. Each federal budget since that announcement has featured measures to implement that plan.

“In its winter Business Outlook Survey, the Bank of Canada reported that 44 per cent of Canadian firms expect to invest more than they did last year in their businesses. If parliamentarians renege on their promise to continue with promised tax decreases, you can be certain that many businesses will not be able to pursue their plans,” said Mr. Beatty.

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The Canadian Chamber of Commerce is the vital connection between business and the federal government. It helps shape public policy and decision-making to the benefit of businesses, communities and families across Canada with a network of over 420 chambers of commerce and boards of trade, representing 192,000 businesses of all sizes in all sectors of the economy and in all regions.

For further information:
Émilie Potvin
Director, Public Affairs
The Canadian Chamber of Commerce
613.238.4000 ext. 231
epotvin@chamber.ca