As part of this review, we urge the government to make credits refundable for all claimants, regardless of size, or consider allowing an offset through which they are creditable against an employer's portion of EI premiums.
If we are to stay competitive and attract the best and the brightest, we need to stay attuned to the personal income tax burden placed on Canadians. Roughly half of Canada's tax revenue comes from personal taxation. This is high by international standards. Our top marginal rates are high and apply at lower-income thresholds than is the case with many of our competitors.
Let me say at the outset that we do not believe the way to address this is through the introduction of additional targeted tax benefits. While such targeted measures initially seem attractive, in the end they simply introduce more complexity and inefficiencies in the tax system.
Acknowledging the need for fiscal responsibility, we believe that broadly based reductions to personal income tax are preferable to targeted tax benefits. Over time, and as finances permit, we urge the government to consider an increase in the top two thresholds and the rate of tax applied to them.
Thank you.