When we look at corporate income tax and surtax, obviously the competitive tax structure is important. We think the federal government is on the right track with accelerating reductions in corporate tax rates, but we believe the pace is too slow. We'd like to see the pace of the step-down tax rates stepped up by a few years. We also think the federal government should carry through with the elimination of corporate income surtax for all corporations by the start of 2008.
When we look at small business income tax, we think, again, that the federal government is on the right track in raising the threshold. We should continue on that trend by increasing the incremental relief for Canadian small businesses by committing to raising the threshold even further, as well as accelerating the reduction in the small business tax rate. Small business is the machine that drives the country, and we need to create further incentive there for them to create employment and increase productivity.
Debt reduction is obviously important. Demographic challenges that we face coast to coast are not going away any time soon, and we believe it is prudent to step up and take responsibility for the debt we currently face. An increasing emphasis on paydown on debt is the right thing to do.
From our members' perspective, the opportunity to take part in government-related work and projects is attractive. Public-private partnerships are obviously an important way to streamline the efficiency within government. We think that government should continue to look at those more closely as a means to streamline processes and create efficiencies at the government level.
Governments should ensure fair and proportionate levels of federal government employment and procurement activity on a provincial basis and correct any unwarranted imbalances that disadvantage particular provinces.
Thank you.