CICA calls on feds to focus on tax regime

“We applaud the federal government for its plan to balance the budget over time through expenditure controls rather than increasing the overall tax burden on Canadians,” says Kevin Dancey, president and CEO, CICA. “This approach must continue.”

In fact, the CICA states that the personal income tax burden should be eased. “This will help Canadians prosper during these times of economic uncertainty and help attract and retain talent in the global marketplace,” stresses Gabe Hayos, the organization’s vice-president of taxation.

In addition, the submission notes that reducing the complexity of Canada’s domestic tax regime is integral to easing the regulatory burden placed on Canadian businesses and attracting investment.

“Many aspects of Canada’s tax system have become too complex for businesses and individuals and we recommend that the government establish a national consultation process to examine tax simplification measures,” explains Hayos.

For example, rather than introducing personal income tax credits that only add complexity, the CICA believes broad-based tax reductions represent a more meaningful approach and should be examined.

Other topics addressed by the CICA include federal innovation funding, reducing red tape, expanding international trade agreements and helping internationally trained professionals succeed in their chosen fields.

The submission also notes that ensuring the adequacy of retirement savings is fundamental to addressing the challenges associated with an aging population. It calls on the government to provide further incentives to help Canadians save for their retirement. “Financial literacy also is a factor,” says Dancey. “Financial capabilities vary among Canadians so we must ensure that people have the skills and knowledge required to provide for their retirement.”