Funding Growth, Opportunities, Employment

"To compete in terms of investment today, with a strong dollar and growth still shaky in many of our export markets, Canada requires a considerable tax advantage ... our governments have opted for a tax reform that will stimulate business investment and jobs." John Manley, president, Canadian Council of Chief Executives

John Manley was also Minister of Industry in the Chretien-led Government of Canada. There was also a time when Mr. Manley was felt to have a good chance at vying for the job of leader of the Liberal Party, and as such posed as a credible, experienced and respected candidate for the position of prime minister of the country.

The current Leader of the Official Opposition however, believes other than does Mr. Manley, that the government of Stephen Harper is being fiscally irresponsible in leading the country down the garden path of increased debt at a time of high indebtedness and deficits as a result of the economic downturn.

Mr. Ignatieff, leader of the Liberal Party of Canada, speaks as did David Lewis back when he popularly labelled corporate Canada "corporate welfare bums". Overlooking the undeniable reality that it is those corporations which create employment in the country. Governments do not create sufficient jobs to employ the entire workforce.

Lower corporate tax rates please corporations mightily, just as they do Canadian economists who see a brighter future ahead for manufacturers, investment and exports. Mr. Ignatieff is in a great huff about it: "Harper is on a tour to promote corporate tax giveaways. I've just come from a meeting of all the chief executives of the country and told them that's a bad choice when we are in a $56-billion deficit."

But John Manley feels otherwise about the tax-reduction program: "Right now, Canada has another opportunity to improve the competitiveness of the tax system. I am referring here to the federal plan to lower the statutory corporate tax rate to 15% by 2012. Behind this plan is a recognition that few things matter more to Canada's economic future than our ability to attract and retain investment."

Moreover, the Canadian Manufacturers & Exporters lobby group's report reflected that advantage when they reported that the tax reductions would initiate a total business investment increase of $6.2-billion, and anticipate the creation of about 100,000 new jobs. It's those new jobs we desperately need, resulting from making the country a more attractive investment and business environment.

There simply are times when it makes good sense to recognize the advantage of viewing corporate interests in a positive light; that what is good for business is good for the GDP, giving a boost to employment opportunities and helping drive the engine of recovery and going overdrive into post-recovery and the pay-down of the debt.