We believe that the income tax reduction plan for both corporations and individuals is definitely the right approach to take. I am certain that is what has helped make Canada the place to invest and kept its economy so much healthier than all the other countries around the world—or most of them, at least—in the face of this recession. We must build on these positive measures in order to achieve sustained growth, economic and otherwise, in the long run.
Many employers and businesses in Canada that have moved into other countries, that have made investments and met with stakeholders, have said the same thing about Canada's ability to weather this storm—because it has weathered this recession. We have truly set the bar. Clearly, we have a solid banking system and our fiscal house is in relatively good shape. The right steps were taken, and we must build on that advantage.
Raising taxes, in our view, is never conducive to improved economic growth, more employment, better productivity or higher investments—quite the opposite. We need to find ways to stay competitive, and creating a competitive tax and regulatory environment is one way to make that happen. We are fortunate to have a country, an economy, that has taken that approach. It's the right thing to do. Once again, I want to state that maintaining tight control of public spending is the right thing to do.
Naturally, some decisions need to be made, and some transfers to the provinces are essential. So far, there has been no mention of cutting transfer payments to the provinces. On the contrary, health and education transfers should continue at the levels planned. That is a good thing for the provinces.
However, reducing the tax burden on corporations and individuals is, once again.... We must not forget individuals. Incentives to work need to be in place, and workers need to be rewarded, not penalized, for their efforts. This is especially important because not only is Canada's skilled labour force getting older, but it is also shrinking and a shortage is on the horizon, as I have said. Skilled workers are also in demand around the world, so Canada needs to appeal to both workers and businesses.