On the second day of policy wins we want to celebrate our taxation win of an accelerated capital cost allowance.
We have been advocating for a comprehensive taxation review since the U.S. cut corporate and personal tax rates and allowed businesses to deduct the cost of new investments in business property immediately rather than over the life of the asset.
Despite the Fall Economic Update leaving corporate and personal tax rates unchanged, we were pleased that the federal government committed to accelerated investments in the National Trade Corridors Fund in their Fall Economic Update 2018. Leading up to the announcement we advocated for an accelerated capital cost allowance as it would ultimately unleash capital spending and create new jobs to foster a more competitive Canada.
Despite this win, corporate and personal tax rates have remained unchanged which needs to be addressed. As we continue to call for a comprehensive review, we realize that this process is a larger and longer term project. However, we are determined to advocate for changes that could be implemented immediately and would bring much needed relief and value for Canadian businesses, including the ability to write off capital costs in the year they were incurred.
We will continue to advocate on this issue next year and look forward to sharing our specific recommendations with the federal government in our tax competitiveness report being released January 2019.