The Investment Industry Association of Canada CEO, Ian Russell has suggested that Canada should reduce the tax or eliminate the tax on capital gains on smaller companies. The feeling is that this would provide additional cash flow into smaller companies and will drive economic activity and jobs.
The IIAC also suggest that Canada has “a less competitive capital tax environment that the U.S. and a number of European countries.” Compared to U.S. taxes, Canada will be slightly higher than the U.S. in 2011 at the top tax bracket. However, my feeling is that for the average Canadian the total combined tax (federal, stat/provincial, and city taxes) are close but that only in the higher brackets does the U.S. get taxed less.
Who Is the IIAC?
The IIAC is the advocacy group of the financial services industry. It is an offshoot from the old Investment Dealers Association when the regulatory and advocacy functions were separated a couple of years ago. Many of the members of the IIAC are the traditional stock brokerage firms and discount brokers.
For more in the IIAC, visit their website.