If your business is incorporated, some of the major parties may have good news for you. The Conservatives propose to lower the corporate tax rate to a combined provincial and federal rate of approximately 35%, (suggesting a corporate federal tax rate of 20.5%), within 5 years (PC Full Policy, p. 4).

Stockwell Day has promised that the Canadian Alliance will “reduce Corporate Tax to 21% by immediately reducing the general corporate tax rate by 3 percentage points, from 28 to 25 within two years.”

The Liberals promise to reduce the top corporate income tax rate of 28% to 21%, by making a 2% cut in 2002 and cuts in subsequent years. (Liberal Platform).

Once again, the NDP are silent on this issue.

Gas and Fuel Taxes

If your business involves transporting goods, involves a lot of driving or involves fuel costs to run machinery, you’ll be interested to know that only the Progressive Conservative party is specifically promising to cut fuel taxes. Their Progressive Conservative Policy Summary includes promises to reduce the federal excise tax on diesel fuel from 4 cents to 2 cents/litre, eliminate the 1.5 cents/litre surtax on gasoline, and remove the GST on home heating fuels. All of these measures apply for only one year.

The only other party that mentions fuel taxes in their platform is the Liberals; they promise to give fuel tax rebates of up to $250 per household to “help families pay for the increased cost of fuel this winter” (Liberal Platform, p. 5). So only the Conservatives are offering fuel tax cuts that businesses may be able to benefit from, unless you operate your business out of your home.

Other Taxes

I think the elimination of the GST would do more to stimulate business than all of the proposed measures above combined. Think how much sweeter your life would be if you didn’t have to charge, collect, and report it! Think of the number of bureaucrats who would no longer be necessary if the government was no longer collecting it and checking on your collection of it! Only the NDP includes a promise to end the GST/HST tax in their Commitment to Canadians, but they “realize it will have to be gradual” (p.16). In other words, they’re not prepared to state when they would eliminate it, or how long it would take.

On the same page of their published platform, the NDP, true to their roots, also promise to introduce a Millionaire’s Tax on transfers of inherited fortunes over $1 million. However, “The transfer of farms or small businesses within the family would not be taxed” (p 16).

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