Thank you, Mr. Chair, and thank you for the opportunity to present our recommendations today.
The Canadian Centre for Policy Alternatives is Canada's leading progressive policy research institute. We produce the research and analysis necessary for policy-makers, activists and everyday Canadians to work towards a more equitable, sustainable and just future.
According to the big business lobby, the most pressing threats to Canada going into 2019 come from uncertainty in our trade relationship and our relative tax competitiveness with the United States, and the effects of burdensome regulations on lagging productivity. Are these really the biggest challenges facing Canada today?
The reality is this: Canadian economic competitiveness is threatened far less by corporate tax and regulatory changes south of the border than it is by climate change, persistent inequality, and dramatically underfunded public services and social programs. Canada stays a desirable place to do business to the extent that we have a healthy, well-educated population, a skilled workforce, a cohesive society and liveable communities. We can improve our competitiveness by continuing to invest in our people and our communities.
Let me highlight a few key recommendations from the alternative federal budget we released yesterday.
First, given the changing nature of work in a fast-evolving economy, this budget needs to make lifelong investments in Canadians to set them up for success. Employment insurance needs a fundamental rethink to address a changing labour market and income inequality. Setting a universal EI entrance requirement of 360 hours makes sense, given the prevalence of part-time and precarious work, as does a minimum benefits floor and doubling the length of EI sick leave.
We need a new policy framework for post-secondary education that expands access to higher education and training by eliminating tuition fees.
And we need to correct Canada's relative underinvestment in skilled trades apprenticeships and adult education.
Second, competitiveness depends on the resilience of Canadian communities and workers in the face of climate change and stronger action to lower emissions. Canada needs a national decarbonization strategy to meet our Paris Agreement commitments and to future-proof our economy. A strategic investment of a billion dollars in training could ensure a supply of skilled workers for new jobs in the clean economy, and a sustainable infrastructure transformation fund would inject $6 billion into high-speed rail, clean electricity and other key infrastructure.
Third, the budget needs to invest in public services that support a high quality of life and a well-functioning economy. For example, the last budget's commitment to pharmacare is a historic opportunity. Canada's current multi-payer drug coverage is among the most expensive in the world. Implementing a national universal single-payer pharmacare plan could create annual savings of up to $11.5 billion across the entire economy.
Most countries spend at least 1% of GDP on childcare, but Canada trails at 0.3%. No government serious about gender equality or economic growth can stall on this priority.
These are just some examples of how Canada can become more competitive and a healthier, more equitable society. But they can't be achieved without revenue.
Decades of tax cuts have compromised the fiscal health of government. Federal revenues are now at 14.4% of GDP, much lower than the 50-year average of 16.4%. That 2% gap represents a loss of $46 billion in 2019 alone. Canada does not have a spending problem. It has a revenue problem. The crackdown on corporate tax evasion and tax dodging must continue. It is well past time to close expensive tax loopholes that benefit mainly the wealthiest income earners, including the stock option deduction and preferential taxation of capital gains.
There are options for Canada, and we can afford to act on them. The choices we make today to tackle inequality, implement universal pharmacare and act on catastrophic climate change will determine the sustainability of our society and economy for years to come.
Thank you.