Canadian Taxation

Institute for Competitiveness and Prosperity… not.

Published On November 7, 2013 | By Joseph (Ken) | Corporate tax, Economy, Government

Think tankI was just reading an article Canada and Ontario tax systems need to smarten up  from the Institute for Competitiveness and Prosperity.

I found it interesting with some good points until I came across the following:

“Most importantly, we should shatter the myth that our provincial economy is driven by small businesses, phase out the small-business tax deduction, and use the proceeds to provide incentives for economic growth across the board.”

What kind of idiotic statement is that?  

Please consider 10 surprising stats about small business in Canada

“How many Canadians work for small businesses? 5,137,147 (48.3 per cent of Canada’s total workforce)

“What do small businesses contribute to Canada’s total exports? 86 per cent of Canadian exporters were small businesses in 2009.

“How much do small businesses contribute to Canada’s GDP? In 2005, small businesses accounted for 42 per cent of the country’s private sector GDP.”

To follow up let’s look at  Institute for Competitiveness and Prosperity 

“The Institute for Competitiveness & Prosperity is an independent, not-for-profit organization that deepens public understanding of macro and microeconomic factors behind Ontario’s economic progress. We are funded by the Government of Ontario and are mandated to share our research findings directly with the public.”

How can they state they are independent when they are funded by the Government of Ontario?

Reminds me of “Think Tank” lacks forward thinking on Canada Post Banking

“Have you ever heard of the think tank “Canadian Centre for Policy Alternatives”?

As per Wikipedia, “It is funded primarily through individual donations, but also receives research grants, and has institutional support from trade unions.”

Another great quote from Canada and Ontario tax systems need to smarten up  

“If our recommendations were followed, a significant amount of funding would become available to federal and provincial governments for reallocation to meet public policy goals. “

In other words, if you follow their recommendation, in removing the small business deduction, the Government of Ontario receives more of your tax dollars to waste (sorry, “relocate”).  

With the Institute for Competitiveness and Prosperity, don’t be fooled by the name, any institute arguing for increased taxation isn’t interested in competitiveness or prosperity.

 

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About The Author

Joseph (Ken)
(Ken) is a Registered Public Accountant with over 25 years of public practice experience in the accounting profession. Ken specializes in accounting information systems, taxation and financial reporting.

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