Canadian businesses want tax system to drive investment and resilient economic growth

Whats Happening:

A new KPMG survey reveals that 91% of Canadian business leaders believe it's time to simplify the tax system and cut investment tax rates to stimulate economic growth. The survey of 250 business leaders identified comprehensive tax reform as a top priority for increasing business competitiveness, second only to removing interprovincial trade barriers.

Key Moves:

• 91% of business leaders say Canada must simplify the corporate income tax system

• 90% agree Canada needs to eliminate barriers to investment

• 91% believe governments need to implement tax policies that encourage greater investment and technology adoption

By The Numbers:

• 91% say Canada must simplify the corporate income tax system

• 72% believe current Canadian tax policies don't provide enough inducement to invest

• 58% named tax reform as a top three priority for increasing business competitiveness

Key Quotes:

• "In this period of nation-building, we have an historic opportunity to overcome years of complacency and build a competitive tax system that responds to today's challenges of sluggish productivity and slowing business investment in Canada," says Lucy Iacovelli, Canadian Managing Partner, Tax and Legal, KPMG in Canada.

• "Canada's business community and governments need to align on more favourable corporate tax policies that will help to blunt the impact of disruptive U.S. trade and retaliatory tax policy," adds Ms. Iacovelli.

Bottom Line:

Canadian business leaders are calling for urgent tax reform to drive investment and economic growth. With 91% of surveyed leaders advocating for a simplified tax system and reduced investment tax rates, there's a clear mandate for the government to act. This push for reform comes as businesses face challenges from U.S. tax policies and global economic pressures.

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