Economic OpportunityA fairer Canada

Economic Opportunity: Lower Income Taxes

Experts generally agree that income taxes are an inefficient and regressive way for government to raise revenue. Shifting the tax base away from income taxes will boost investment and create jobs. Experts also generally agree that high income taxes hurt economic growth and job creation.

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Income taxes in Canada are high. The level of income tax (direct taxation) in Canada has risen significantly over the last 50 years, from about 12% of gross household income in the 1960s to about 18% today – a 50% increase.

Reducing income taxes is one way to boost growth, encouraging Canadians to work, save and invest. Simplifying Canada’s income tax system is another way to boost growth, by broadening the tax base, reducing the cost of compliance and helping to make the tax system more competitive with other jurisdictions.

I have a plan to lower income taxes.

The Plan

A Conservative Party led by Michael Chong will:

  • Reduce personal income taxes by $14.9 billion a year. This would be an absolute reduction in personal income taxes of 10%
  • Flatten the personal income tax system from five rates to two rates, keeping the current 15% and 29% rates and the current thresholds
  • Simplify the personal income tax system by eliminating half of the $22.9 billion in tax expenditures identified by the Fraser Institute
  • Reduce corporate income taxes by $1.9 billion a year. This would be an absolute reduction in corporate income taxes of 5%

The Results

Reducing income taxes and simplifying the personal income tax system:

  • Result in an absolute reduction in personal income taxes of at least $14.9 billion and up to $44.9 billion a year
  • Result in an absolute reduction in corporate income taxes of $1.9 billion a year
  • Result in a 10-year $86.9 billion fiscal stimulus in the form of income tax cuts
  • Boost medium- to long-term economic growth
  • Reduce the cost of tax compliance
  • Reduce the need for family income splitting, since flattening the tax system eliminates the difference between marginal rates

Lowering income taxes and simplifying our tax system is one of the biggest things we can do to help create jobs and growth. Support my Conservative plan to lower income taxes. Donate today!

For more in-depth analysis of my plan, read the backgrounder!

The reviews are in – and economists are praising Michael Chong’s bold strategy to cut income taxes and reduce Canada’s emissions. 

Economic Opportunity: Helping Small Businesses

Canada has low levels of business investment relative to many of our economic competitors. Small- to medium sized businesses are finding it harder to get financing from the big banks, making it difficult for them to invest, grow and create jobs.

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 The federal government itself contributes to making it more difficult for small businesses to get financing because of the the Canada Mortgage and Housing Corporation’s (CMHC), expansion of mortgage credit. With no risk to their investment in government-backed mortgages, the banks have a government-created incentive to focus on mortgage lending and not on SME lending.
 
This has resulted in the allocation of capital away from more productive uses such as business investment, reducing Canada’s productivity rate and diminishing long-term prosperity.
 
In short, banks would rather invest in mortgages at no risk to themselves, leaving all the risk with taxpayers, rather than financing small and medium-sized businesses. This in turn has reduced the amount of capital for more productive uses, such as machinery and equipment.
 
This isn’t my opinion – it’s based on research done by the International Monetary Fund.
I have the long-term plan to help SMEs access financing.

The Plan

A Conservative Party led by Michael Chong will:

  • Privatize Canada Mortgage and Housing Corporation’s (CMHC’s) mortgage insurance and securitization business; and

  • Strengthen the Office of the Superintendent of Financial Institutions (OSFI) to ensure that Canada’s banks do not take undue risk and undermine the stability of the Canadian financial system.

The Results

Privatizing CMHC’s mortgage insurance and securitization business, and strengthening OSFI’s oversight over the mortgage market will:
  • Increase financing available for small- and medium-sized enterprises;
  • Allow SMEs, the engines of our economic growth, to invest in machinery, equipment and human resources to increase productivity;
  • Close the gap with our major economic competitors on business investment, in which Canada currently lags far behind;
  • Increase productivity and long-term prosperity.

Privatizing CMHC is the one of the biggest long-term things we can do to help small businesses access financing. In fact, former finance minister Jim Flaherty talked about doing exactly this in October 2012.

Support my Conservative plan to privatize CMHC, a long-term plan help small businesses. Donate today!

For more in-depth analysis of my plan, read the backgrounder!

Economic Opportunity: Making Housing Affordable

It's no secret that the house prices have skyrocketed, putting home ownership out of reach for many families. In the Vancouver area, the average single detached house now costs $1.4 million. In the Greater Toronto Area, it’s over one million.

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The government created this problem. Government interference in the housing market, through something called the Canada Mortgage and Housing Corporation (CMHC), has been the biggest reason for the skyrocketing prices.

This isn’t my opinion – it's based on research done by the International Monetary Fund and many others.

I have the long-term plan to make housing more affordable.

The Plan

A Conservative Party led by Michael Chong will:

  • Privatize Canada Mortgage and Housing Corporation's (CMHC's) mortgage insurance and securitization business; and
  • Strengthen the Office of the Superintendent of Financial Institutions (OSFI) to ensure that Canada's banks do not take undue risk and undermine the stability of the Canadian financial system.

The Results

Privatizing CMHC's mortgage insurance and securitization business, and strengthening OSFI's oversight over the mortgage market will:

  • Make housing more affordable for Canadian families;
  • Increase financing available for small- and medium-sized enterprises;
  • Lessen the risk to Canadian taxpayers; and
  • Reduce federal debt and interest payments.

Privatizing CMHC is the single, biggest long-term thing we can do to help restore affordability to home ownership. In fact, former finance minister Jim Flaherty talked about doing exactly this in October 2012.

Support my Conservative plan to privatize CMHC, a long-term plan giving Canadians the opportunity to own a home. Donate today!

For more in-depth analysis of my plan, read the backgrounder!

Economic Opportunity: Helping Low-Income Canadians

Low-income Canadians are finding it harder and harder to make ends meet. They're being squeezed by the increasing cost of living, sluggish wage growth and high unemployment. And our workforce is aging. There are fewer and fewer workers.

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I have a plan to help low-income Canadians and increase Canada's workforce.

My plan will double the Working Income Tax Benefit, which Finance Minister Jim Flaherty introduced in 2007.

This will help Canadians in minimum wage jobs by effectively raising the minimum wage. It will also help meet the challenge of Canada's shrinking workforce by giving people an incentive to work.

The Plan

A Conservative Party led by Michael Chong will:

  • Double the Working Income Tax Benefit, from $1.15 billion to $2.3 billion

The Results

Doubling the Working Income Tax Benefit will:

  • Help Canadians in minimum wage jobs by effectively raising the minimum wage
  • Meet the challenge of Canada's shrinking workforce by increasing the opportunity cost of not working

Support my Conservative plan to double the Working Income Tax Benefit, a long-term plan to give help low-income Canadians and increase Canada's workforce. Donate today!

For more in-depth analysis of my plan, read the backgrounder!