Thank you, Mr. Chair and committee members. Thank you for the invitation as always to take part in your pre-budget consultations.
The Business Council of Canada represents the chief executives and entrepreneurs of 150 leading Canadian companies in all sectors and regions of the country. Our members employ 1.7 million Canadians, account for more than half the value of the TSX, and contribute the largest share of federal corporate taxes. They are also responsible for most of Canada's exports, philanthropy, and private sector investments in R and D.
In the council's pre-budget submission to this committee, we urge the government to boost Canadian productivity by increasing female labour-force participation, supporting women in STEM, enabling seniors to work for longer, and helping Canadians navigate the changing job market. While no single policy or program will boost labour productivity across the board, I'll just highlight two specific policies.
First, the government should replace the existing child care expenses deduction with an income-tested refundable tax credit. Second, increasing the eligibility age for OAS and the GIS to 67 from the current 65 would address the reality of an aging society and longer life expectancies.
In our submission we also called on the government to adopt a competitiveness agenda that includes simplifying the tax system and streamlining the regulatory environment. Doing so would position Canada as a more attractive investment destination. On that point, I would like to share with you the results of a survey that we just conducted over the summer with our member companies. Sixty-one of Canada's largest companies took part in the survey, and almost two-thirds said that Canada's investment environment has worsened over the past five years. Only 20% said the investment environment has improved. This is extremely worrying for us, and to improve this trend and reverse it, we believe that the following actions should be taken to improve business confidence here in Canada.
The first is reforming Canada's tax system. Our country's tax competitiveness is slipping, in part because provincial corporate tax rates have crept higher. Our combined federal and provincial corporate tax rate now sits above the OECD average, and we have the 13th-highest tax burden on investments among the 34 OECD countries.
Mr. Chair and committee members, I know that earlier today you held hearings on the government's plan to rewrite the tax rules for private corporations. Our president and CEO, the Honourable John Manley, will be submitting views to Minister Morneau later this week. I'll make sure I share those with the committee, but one thing is sure: the proposals will do nothing to help Canada's tax competitiveness, and, in fact, we believe they risk driving investors and entrepreneurs away.
Rather than making incremental changes to an already complicated tax system, we believe now is the time for comprehensive review aimed at strengthening fairness and efficiency. In our view, the best way to achieve this is to broaden the tax base and lower rates. Of equal importance is the need to ensure that the tax system does not favour certain kinds of businesses over others.
The second is enhancing regulatory certainty. Delays in approving new projects, as well as compliance costs associated with regulations, can impede investment and innovation. To fully support private and public investments in innovation and infrastructure, the federal government must make regulatory approval processes more transparent, predictable, fact-based, and capable of rendering decisions in a timely manner. Where possible, we urge the government to develop new regulations collaboratively with industry and to undertake regular reviews to identify outdated rules for elimination.
The final action is achieving fiscal sustainability. While the Business Council supports moderately expansionist fiscal policy that allows for investments in productivity-enhancing infrastructure, we are very concerned by the federal government's failure to set a clear target for balancing the budget. The government's own long-term fiscal projection suggests that it will run deficits through to 2050. The next time Canada enters a recession, the tax revenues will decline while demands for higher spending will increase. Balancing the budget now would help ensure that Canada is positioned to weather this inevitable downturn.
Thank you for the opportunity to address the committee. I look forward to answering questions.