Thank you very much.
Our general comment with regard to climate action in budget 2022 is that there's nowhere near enough direct actual action with funding to achieve the types of economic transformations that we need. We're concerned that there is excess reliance on tax credits. In this specific implementation bill, there's a reduction of the corporate income tax for zero-emission technology manufacturers. We're always concerned anytime new complications are introduced into the tax code.
Mr. Strickland already brought up the fact that the tax system works best when it's kept simpler. We're always concerned when something is introduced that's going to reduce the tax rate for some sub-segment of the corporate community because there's so much opportunity for gamesmanship around this. We're concerned that this puts an excessive burden onto the CRA to have to oversee what is actually qualifying as zero-emission technology.
On the other side of things, if you're going to be reducing tax rates to try to encourage certain types of manufacturing, then let's have the balancing act of perhaps raising tax rates on the production of technologies that contribute to higher emissions. We just think that this is very asymmetrical as it's introduced and there's a lot of substitution of what looks like action for actual action.