FINA Committee Report

CHAPTER 3

RECOMMENDATION 1:

the federal government amend the Income Tax Act in order to increase the income thresholds in respect of personal income taxation.

RECOMMENDATION 2:

the federal government, in respect of the Lifelong Learning Plan, amend the Income Tax Act in order to enhance the ability of registered retirement savings plan holders to withdraw funds to support lifelong learning.

RECOMMENDATION 3:

the federal government amend the Income Tax Act in order to make the Disability Tax Credit refundable.

RECOMMENDATION 4:

the federal government develop and implement a non-refundable training tax credit for employers.

RECOMMENDATION 5:

the federal government amend the Income Tax Act in order to enhance the Working Income Tax Benefit.

RECOMMENDATION 6:

the federal government amend the Employment Insurance Act in order to:

a)     enable the creation of an independent Employment Insurance fund; and

b)     enhance the Employment Insurance program.

RECOMMENDATION 7:

the federal government amend the Income Tax Act in order to increase, to a proportion to be determined in relation to going concern liabilities, the maximum tax-deductible surplus in respect of defined benefit pension plans before plan sponsor contributions must be suspended.

RECOMMENDATION 8:

the federal government amend the Old Age Security Act in order to increase the income thresholds at which the amount of Guaranteed Income Supplement (GIS) benefits begins to be reduced or “clawed back.”

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CHAPTER 4

RECOMMENDATION 9:

the federal government amend the Income Tax Act in order to extend, for a five-year period, the accelerated capital cost allowance for manufacturing and processing machinery and equipment.

RECOMMENDATION 10:

the federal government amend the Income Tax Act in order to increase the capital cost allowance rate applied to rail rolling stock. The rate should be comparable to that in the United States and should reflect the useful life of the rolling stock.

recommendation 11:

the federal government, in respect of the Scientific Research and Experimental Development tax credit, amend the Income Tax Act in order to:

·        increase the annual expenditure limit;

·        increase the taxable capital threshold;

·        remove the Canadian-controlled private corporation restriction; and

·        make the credit partially refundable for all claimants.

RECOMMENDATION 12:

the federal government develop and implement a non-refundable tax credit to encourage small and medium-sized businesses to undertake activities related to pandemic preparedness.

recommendation 13:

the federal government develop a concrete policy to assist the manufacturing and forestry sectors. This policy should include implementation of the fiscal recommendations contained in the February 2007 report of the House of Commons Standing Committee on Industry, Science and Technology.

recommendation 14:

the federal government clarify the income trust guidelines issued by the Department of Finance on 15 December 2006.

RECOMMENDATION 15:

the federal government amend the Excise Tax Act in order to permit arrivals duty-free purchases at Canadian airports.

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CHAPTER 5

recommendation 16:

the federal government make permanent the existing program for the sharing of a portion of the federal gasoline excise tax revenues with municipalities. Moreover, in the next budget, the portion to be shared should be 5 cents per litre.

recommendation 17:

the federal government, in respect of the Home Buyers’ Plan, amend the Income Tax Act in order to increase the amount that can be withdrawn from a registered retirement savings plan to purchase or build a qualifying home for the holder of the plan or for a related person with a disability.

recommendation 18:

the federal government develop and implement tax incentives to encourage truck owners and operators to reduce greenhouse gas emissions. In particular, incentives should be developed to encourage the purchase of vehicles that are less harmful to the environment.

recommendation 19:

the federal government amend the Income Tax Act in order to enhance incentives for charitable giving.

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APPENDIX A

RECOMMENDATION 1:

the federal government encourage provinces/territories to remove internal barriers to trade. In so doing, priority should be given to reaching agreement about a common securities regulator.

RECOMMENDATION 2:

the federal government continue to provide need- and merit-based support to students enrolled in post-secondary institutions.

RECOMMENDATION 3:

the federal government create a specialized fund for medical research for children’s health. In this regard, priority should be given to the establishment of a partnership with the Juvenile Diabetes Research Foundation Canada.

recommendation 4:

the federal government continue to support students enrolled in post-secondary education at a level commensurate with the funding allocated to the Canada Millennium Scholarship Foundation.

recommendation 5:

the federal government increase the income support available to older workers in the manufacturing sector who face employment disruption.

recommendation 6:

the federal government develop and implement a policy to combat poverty. This policy should include:

·        full retroactivity of Guaranteed Income Supplement benefits for those who have not received the benefits to which they are entitled;

·        the payment of full Guaranteed Income Supplement benefits to the surviving spouse or common-law partner for six months following the death of the recipient; and

·        an income support program for older workers.

recommendation 7:

the federal government create loan and loan guarantee programs for employers in the manufacturing and forestry sectors, as well as for other industrial investments.

recommendation 8:

the federal government allocate $1 billion to the forestry sector.

recommendation 9:

the federal government allocate $1.5 billion for reimbursable contributions for businesses wishing to modernize their equipment.

recommendation 10:

the federal government amend the Copyright Act in order to improve and modernize the legislation.

recommendation 11:

the federal government develop and implement a program designed to ensure the removal of E. coli from the Canadian food chain.

recommendation 12:

the federal government develop and implement a program to encourage the provinces having a sales tax to adopt a value-added tax system. This program should be available to those provinces that desire harmonization.

recommendation 13:

the federal government encourage the Canada Mortgage and Housing Corporation to use its retained earnings to leverage private-sector development in an effort to increase the stock of affordable housing. Any legislative or other changes needed by the Corporation to attain this objective should be provided.

recommendation 14:

the federal government allocate $30 million annually for five years to finance the Canadian Olympic Committee’s Road to Excellence Program.

recommendation 15:

the federal government apply the principles of the Leadership in Engineering and Environmental Design (LEED) Green Building program to federal public buildings.

recommendation 16:

the federal government establish a timetable in order to reach an allocation of 0.7% of Canada’s Gross National Product to assist developing countries.

recommendation 17:

the federal government develop and implement a cap-and-trade system in respect of carbon emissions.

recommendation 18:

the federal government increase support for broadband deployment in rural and remote regions of Canada.

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