The short answer is that it's not helping. It's actually hurting it in a very negative way. Oftentimes, we look at the impacts of policies by what's been enacted. But investors and forward-thinking entrepreneurs also look at the economic climate based on what the expectations are for the future. So when we have a situation where there's an unstable fiscal framework....
Maybe I'll just digress for a second on this because I want to highlight how important it is to get our fiscal framework right. We are due for a recession in the next three to five years. When we have a situation where the federal government is running substantial deficits by choice, it puts our finances in a very precarious situation should there be a recession, should there be an economic downturn where revenues fall and spending increases. It's more important now for us to make sure our fundamentals are right, if and when that occurs.
But what's happening is that we're seeing the potential for further tax policy changes because of this uncertainty and the higher debt that's being accumulated—so the uncertainty from an unstable fiscal framework and the signals being put forth by the government, whether it's the musings about a higher capital gains tax, which it has not clarified whether that's completely off the table....
The unfortunate rollout of its current proposed changes to small business taxation are adding to a significant burden. I just want to highlight some of the language that's being used by the Minister of Finance. In a national interview, when asked about the proposed changes, he responded by using the words “going after” to describe the government's approach to taking more taxes from small businesses and professionals. It's a signal that's hard to quantify, but when put against a backdrop of higher marginal tax rates, carbon pricing mandates, increasing payroll taxes, and several changes happening at the provincial level, it certainly does add up, and it's now happening at a time when we need precisely a more certain and sound economic climate.
So it's really hard to quantify these signals, but they're certainly having an impact, and it's being demonstrated in several surveys that are now being done on Canadian business.