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Liberals did one thing right on economy. Now they're killing it.

Is anybody going to stand up for increased productivity and economic growth in Canada?

Is there a political party that will spend some capital on creating prosperity, more jobs and better quality of life for Canadians?

It’s not a huge surprise that the current Liberal government is increasing taxes on the businesses that create wealth in Canada. We know it’s hard for them to see a tax increase they don’t like. And we know the NDP’s core philosophy is we can tax our way to prosperity.

What is odd is the Conservative Party sitting quietly by as the Liberal government attacks fundamental conservative principles of how to achieve growth and increase prosperity for all Canadians.

In the 2024 budget, the Liberals are bringing in stunning increases on business investment in Canada. While they have flown under the radar with attention focused on the higher profile but less consequential capital gains tax increase, The Hub’s Trevor Tombe lays out the scope and impact of these dramatic tax increases here.

The thumbnail is Canada lowered effective taxes on businesses in 2018 - to maintain competitiveness in the face of dramatic US business tax cuts - by allowing faster write offs on new business investment. But they were a temporary response and now the overall tax on new investment is going from 13.7 per cent to 17 overall.

This is the exact wrong policy at the exact wrong time. Canada already lags behind its developed country peers in quality of life and income growth. Increasing taxes on business will make our situation worse.

It’s easy to have a knee jerk reaction and say ‘Come on, let’s tax the rich!’

First of all, this isn’t about the rich. It’s about the drivers of our economy, the individual and corporate entrepreneurs that do the work out there to manufacture our goods, provide our services, get products to market, employ Canadians and build our communities.

Secondly, tax cuts work. Much of the money saved by a business in taxes gets reinvested in that company, expanding the economy and driving growth. And they don’t cost anything! Tax cuts increase government revenues by injecting money into the economy and stimulating it.

In the year before the Liberals introduced these cuts, Canada’s corporate tax revenue was roughly $45 billion. After four years of the cuts, in 2021, our corporate tax revenue was roughly $56 billion.

This Liberal government does not have a stellar economic record, to put it mildly. This was one of the few prosperity and growth enhancing measures it introduced. It was sector neutral, meaning it applied to all businesses no matter what they did, instead of the usual – and unfortunate –Liberal choice to pick industries and sectors they like and pump government aid into them. Creating an unlevel playing field and having the government, in all its economic wisdom, pick winners and losers is not the path to prosperity.

It is shocking that no voices are being raised to express extreme concern over this regressive policy.

The Canadian Future Party supports policies that make sense for Canada and the lives of Canadians.

The decision to reverse business tax cuts is bad. Very bad. Not for business, but for all Canadians.

We oppose it and we will do what we can to reverse it.


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