Dennis Darby, President and CEO of Canadian Manufacturers & Exporters issued today the following statement with regard to the proposal put forward by Liberal MLA Gerry Lowe to impose investment-killing new taxes on machinery and equipment:
“Taxes on machinery and equipment are an outdated government revenue tool that has no place in 2019. If New Brunswick elected officials are interested in attracting and retaining business, creating good jobs and growing the economy, they should oppose plans for such regressive and counter-productive tax policies.
Since competition for capital intensified in the 1990s post-NAFTA, CME aggressively advocated for the elimination of all capital taxes across the country because they discourage investments. Companies, cities and provinces are in a global competition for investment. Without that investment, companies stagnate. Capital is invested elsewhere, and local operations become less competitive.
Taxing machinery and equipment in New Brunswick would be an anchor that negatively impacts the economy, kills jobs, and, put the province at a competitive disadvantage compared to the other Canadian provinces and, the world. New Brunswick is already falling behind in attracting investment over the past decade, with an overall decline in investment of 17 per cent.
Instead of adding to the tax burden of New Brunswick’s industry, the province should be looking to encourage investment and growth through measures such as the federal government recently-improved Accelerated Capital Cost Allowance (ACCA).”
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Since 1871, Canadian Manufacturers & Exporters has been helping manufacturers grow at home and, compete around the world. Our focus is to ensure manufacturers are recognized as engines for growth in the economy, with Canada acknowledged as both a global leader and innovator in advanced manufacturing and a global leader in exporting. CME is a member-driven association that directly represents more than 2,500 leading companies who account for an estimated 82 per cent of manufacturing output and 90 per cent of Canada’s exports.
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