The Canadian Venture Capital and Private Equity Association (CVCA) released an open letter to party leaders Wednesday outlining what it wants from the next federal government. It recommended the government increase its VC investments, focusing on long-term funding for sectors like biotech and cleantech; prioritize foreign talent acquisition through avenues like the Global Talent Stream; make corporate and personal tax rates more competitive; and review the interest deductibility rules to encourage business creation and foreign direct investment. (The Logic)
Talking point: Many of the CVCA’s requests focus on maintaining or building on programs launched or made permanent by the current Liberal government. The letter also lauds the party for its plan to crack down on corporate tax loopholes. “The CVCA is already mobilizing on this issue,” it reads. The CVCA’s requests on tax competitiveness, however, diverge from existing Liberal policy. If elected to lead the next government, both Liberal and Conservative leaders have vowed to cut personal taxes, either for low-income earners (Liberals) or more broadly (Conservatives). And while the Conservatives have yet to release their full platform, leader Andrew Scheer said he would reverse the Liberals’ small-business tax changes made in 2018 and lower the rate for small-business investments.