The Certified General Accountants Association of Canada is calling on the House of Commons Standing Committee on Finance to undertake a major study of how Canada’s tax system can be made fairer, simpler and more responsive, both for businesses and individuals.
Appearing before the committee in the context of its pre-budget consultations, CGA-Canada outlined for Members the three objectives that should guide tax reform:
- effective tax rates for businesses that are more competitive with the United States and other G-7 countries;
- a more balanced taxation structure in respect of consumption vs. income taxes; and
- lower personal income tax rates.
Everett Colby, Chair of CGA-Canada’s tax and fiscal policy Committee, told the Commons committee that these changes were necessary if Canada was to improve its productivity and thereby maintain a relatively high standard of living. “We have an opportunity in the next few years to get our fiscal house in order, before the baby boomers retire”, said Colby. “The government has taken a number of positive steps in the last few years, but it is time for a structural review of the tax system”, he concluded.
CGA-Canada also called on the government to establish a medium-term debt reduction target of a debt-to-GDP ratio of 30% by the year 2010 and to make the Employment Insurance regime fairer to entrepreneurs.