Calls for corporate tax cuts to help Canadian businesses’ competitiveness amid the lower US tax regime are missing the bigger issues.
That’s according to a new report from the Canadian Centre for Policy Alternatives which is urging the federal government to make some bold choices in its fall economic update.
The CCPA’s Alternative Federal Budget sets out how investing in people can boost competitiveness and encourage innovation by Canadian businesses.
The organization believes that its proposals could lift 1 million people out of poverty and raise revenues by cutting tax loopholes; and create at least 500,000 jobs, many of them in the low-carbon roles of the future.
“The reality is, Canadian economic competitiveness is threatened far less by corporate tax and regulatory changes south of the border than it is by climate change, persistent and damaging levels of inequality, and dramatically underfunded public services and social programs,” says CCPA Director of Policy and Research Gauri Sreenivasan.
Those on less than $254K would be better off
The CCPA’s budget would mean those individuals earning less than $254,000 would be better off due to tax and transfer changes along with other policy shifts including changes to childcare and education costs.
It believes that it can eliminate the gender employment gap, giving a 4% boost to GDP.
“The choices we make today—to tackle inequality, implement universal pharmacare, and act on catastrophic climate change—will determine the sustainability of our society and economy for years to come,” said CCPA Executive Director Peter Bleyer, who will appear before the federal Finance Committee Sept. 20 for pre-budget consultations.
The alternative budget can be downloaded at www.policyalternatives.ca/afb2019.
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