The Certified General Accountants Association of Canada (CGA-Canada) will be closely watching Finance Minister John Manley's federal budget next Tuesday to determine if it meets the high standards of accountability, fairness and transparency.
Specifically, CGA-Canada is concerned that pre-budget spending promises, including the area of health care, may jeopardize the federal government's ability to live within its means.
"We are concerned the government may not be able to stay on track, given the extensive list of expenditure commitments it has outlined in recent months," said Guy Legault, President and Chief Operating Officer, CGA-Canada.
At the top of CGA-Canada's budget scorecard is their position that despite such calls for more spending, the Finance Minister must make a clear and unequivocal commitment not to fall into deficit. In addition, the association feels it essential that Mr. Manley's budget commit half of the federal surplus to debt reduction.
Overall, the association will be grading the budget on eight different criteria to see if it meets their test.
On the corporate tax side, CGA-Canada believes the budget should accelerate and deepen reductions in taxes while eliminating the capital tax. It also takes the position that the threshold for the favourable small business taxation rate be doubled to $400,000.
On personal taxes, the association is calling for no overall tax increase, an end to taxes in the form of user fees (i.e. Air Travellers Security Charge) and an increase in annual RRSP contributions to a ceiling of $15,500.
Finally, CGA-Canada will be watching Mr. Manley's budget for signs of long term tax reform. This is a fundamental ingredient of making Canada more competitive.
CGA-Canada is a professional accounting body representing more than 55,000 CGAs and students in Canada, Bermuda, the nations of the Caribbean, Hong Kong and the People's Republic of China. The Association sets professional standards, develops education programs, publishes professional materials, develops national policy and represents CGAs nationally and internationally.
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