The Committee recommends:

1. That the federal government, acknowledging the current fiscal situation, restrict new spending commitments in the upcoming budget and continue to reject new costly and irresponsible spending.

2. That the federal government remain focused on its plan to return to balanced budgets in 2015.

3. That the federal government introduce balanced budget legislation that will allow the government to meet the commitment to a balanced budget while simultaneously restraining spending.

4. That the federal government reaffirm its already strong commitment to keep taxes low and to not impose new taxes on Canadians, especially any form of a carbon tax that would harm key sectors of the economy while passing the costs on to Canadian families. At the same time, the government should continue to ensure a competitive tax system to promote job creation and attract new investments, including through a continued commitment to small businesses and ensuring competitive personal income tax rates.

5. That the federal government continue to review public sector compensation and benefits to ensure their ongoing financial sustainability, and to align them more closely and make them more competitive with other public- and private-sector employers.

6. That the federal government and the Bank of Canada continue to support the current inflation-targeting framework.

7. That the federal government explore ways to simplify the Income Tax Act to reduce the complexity and inefficiency of its administration. Additionally, the government should ensure the timely assessment of income tax returns and explore the possibility of permitting consolidated reporting. These actions should be taken to ease the burden on Canadian taxpayers.

8. That the federal government undertake a comprehensive review of the tax system and ensure its fairness, as well as its neutrality, by continuing to close tax loopholes that allow select taxpayers to avoid paying their fair share of tax. As well, the government should examine additional ways to better equip the Canada Revenue Agency to combat tax evasion while working collaboratively with law enforcement agencies to prosecute tax evaders.

9. That the federal government remain vigilant in examining ways to improve Canada’s international tax competitiveness, including through the continued implementation of the recommendations of the Advisory Panel on Canada's System of International Taxation.

10. That the federal government continue to build upon the positive work that the Venture Capital Plan is doing to enhance Canada’s venture capital system.

11. That the federal government continue to pursue its aggressive trade agenda, including through continued pursuit of free trade agreements like the Canada–European Union Comprehensive Economic and Trade Agreement and the conclusion of tax treaties with foreign governments, to help eliminate barriers for Canadian goods and services in new export markets.

12. That the federal government continue to encourage provinces and territories to eliminate internal barriers to trade and mobility within Canada.

13. That the federal government continually review all relevant legislation and regulations to ensure the safety and security of the financial sector, thereby maintaining Canada’s standing as having the soundest banking system in the world. At the same time, the government should continue to explore ways to better protect consumers of financial sector products and services.

14. That the federal government further enhance the neutrality of the tax system by eliminating unnecessary fossil fuel subsidies, in line with Canada’s commitment to the Group of Twenty nations.

15. That the federal government investigate the cost and feasibility of expanding the accelerated capital cost allowance to encourage the construction of domestic infrastructure in relation to downstream activities in the oil and gas sector, such as transportation, refining and upgrading, and projects like the Kitimat Clean Refinery. As well, the government should encourage and support the development of infrastructure in relation to liquefied natural gas exports.

16. That the federal government work with the private sector to help Canadian businesses strengthen and grow, create jobs and improve exports.

17. That the federal government reaffirm its commitment, as it seeks to return to budgetary balance, not to reduce transfers to persons, including those for seniors, children and the unemployed, or transfers to other levels of government in support of health care and social services, equalization and the gas tax transfer to municipalities.

18. That the federal government continue to identify ways to increase the labour market and economic participation of vulnerable Canadians, including youth, Aboriginal Canadians, and persons with a disability. Specifically, the government should actively explore proven programs to help these Canadians fill the skilled job shortages and address our shared priority of improving First Nations educational outcomes.

19. That the federal government move forward with a First Nations property ownership act in order to provide Aboriginal Canadians with the same property rights as other Canadians.

20. That the federal government continue to work with the provinces to implement Pooled Registered Pension Plans.

21. That the federal government explore the feasibility and cost of exempting additional in-study income from the Canada Student Loans Program’s assessment of borrowers’ assets.

22. That the federal government continue to improve health research for the health care sector and health professions to further improve health care delivery for patients and reduce costs through improved efficiency. For example, consideration should be given to the development of pan-Canadian health indicators and the promotion of best practices, such as the innovative work that is being done at the Sunnybrook Health Sciences Centre.

23. That the federal government continue to explore innovative ideas for greater charitable giving by Canadians, such as a stretch tax  credit, building upon positive initiatives like the First-Time Donor’s Super Credit.

24. That as Canada is one of four Group of Seven countries without a national dementia and Alzheimer’s strategy, the federal government move expeditiously on the creation and implementation of such  a strategy.

25. That the federal government heed the call of numerous Canadian charities and allow these charities to use computers in their fundraising lotteries, a measure which would save them millions of dollars while costing the taxpayer nothing.

26. That the federal government continue to support basic research and development, including through the federal granting councils and the Indirect Costs Program.

27. That the federal government continue to support applied research. In doing so, the government should examine the benefits of current programs that support research and development infrastructure in Canada, like the NextGen Biofuels Fund or Forestry Industry Transformation Program, and should look at new initiatives that focus on strengthening the capacity for digitally enabled research and partnerships with universities.

28. That the federal government continue to promote the importance of health, sport and physical literacy by continuously supporting organizations such as ParticipACTION and Special Olympics Canada.

29. That the federal government examine tax provisions in relation to real estate, such as the deferral of previously claimed depreciation on income properties.

30. That the federal government continue to explore ways to make Canada’s aviation cost structure more competitive, with a focus on tourism and its economic benefits to Canada.

31. That the federal government continue to promote tax incentives to encourage the development and use of clean energy generation.

32. That the federal government continue to explore methods to encourage value-added domestic production in the energy sector.

33. That the federal government consider making the 15% Mineral Exploration Tax Credit for flow-through share investors, which is currently a temporary measure, permanent in order to support junior mineral exploration.

34. That the federal government, in order to remain competitive in the North American market, explore the cost and feasibility of tax incentives, such as the accelerated capital cost allowance or other support programs to improve the affordability of commercial natural gas vehicles and the use of natural gas as transportation fuel to reduce air pollutants and support economic growth. There should also be a focus on ensuring that communities across Canada have access to sustainable energy in the form of affordable natural gas.

35. That the federal government continue to engage provinces and territories, the Federation of Canadian Municipalities and other stakeholders on the implementation of the new Building Canada Plan with a goal of building strong rural and urban communities.

36. That the federal government continue to promote public-private partnerships, or P3s, for public infrastructure where they can produce better value for taxpayers’ dollars. Consideration should be given to expanding the eligibility of P3 Canada to rural or less densely populated areas.

37. That the federal government continue with and strengthen its efforts to combat contraband tobacco by working to reduce contraband sales.

38. That the federal government set aside proceeds from the upcoming 700mhz spectrum auction for strategic reinvestment in the deployment of broadband infrastructure in Canada’s rural and remote regions.

39. That the federal government unveil a national conservation plan to further increase protected areas, thereby ensuring that Canada’s rich natural heritage is protected.

40. That the federal government amend Classes 43.1 and 43.2 of the Income Tax Act to specify that capital cost allowances for those classes apply to expenditures on tangible stand-alone energy storage assets.

41. That the federal government consider reviewing the mandate of Farm Credit Canada.

42. That the federal government vigorously and continually review spending of taxpayers’ money to eliminate all waste and inefficiencies, including through the elimination of government programs that no longer serve their purpose or achieve their intended results.  This review should include an ongoing review of corporate assets to obtain the most effective and efficient use of government resources, thereby ensuring value for taxpayers.

43. That the federal government continue to implement the recommendations of the Red Tape Reduction Commission, such as the “one-for-one” Rule, to reduce irritants to business that impede growth, competitiveness and innovation. Government efforts could include exploring the possibility of standardizing business reporting language, known as XBRL, to reduce compliance costs for taxpayers and enhance federal data collection.

44. That the federal government continue to work cooperatively with willing provinces and territories towards establishing a  co-operative capital markets regulator in order to better protect Canadians and promote the integrity of Canada’s financial system. These efforts should build on the progress of the agreement with Ontario and British Columbia.

45. That the federal government, in collaboration with the provinces and territories, continue its strong support and promotion of the skilled trades, such as working to implement the Canada Jobs Grant or exploring the feasibility and cost of tax incentives to help both skilled workers enhance their mobility and employers of skilled workers. These efforts should include continued support for Skills Canada to ensure the continued promotion of trades in all educational formats, and to address youth unemployment and underemployment. Key educational stakeholders within the trades, like Polytechnics Canada and the Association of Canadian Community Colleges, should be provided with support.

46. That the federal government explore options to reform and reorient Labour Market Agreements with the provinces and territories to better promote skills training and more effectively respond to labour market needs, such as in the construction sector. Consideration should be given to the recommendations of the Advisory Panel on Labour Market Information, as timely and accurate access to labour market information will be important moving forward.

47. That the federal government continue its modernization of Canada’s immigration system to a “fast and flexible” system better focused on labour market needs, thus supporting economic prosperity for all Canadians. This modernization should include examining the processes for visas, continuing to improve foreign credential recognition for immigrants, and reviewing the minimum language thresholds of the Federal Skilled Worker Program.

48. That the federal government review the Temporary Foreign Worker Program to ensure that it better and more accurately responds to Canada’s labour market needs, including the needs of regions where there are key skills shortages.