Scattered support to companies
Resolution #13: Scattered support to companies (Official French version)
According to a study for the Commission Robillard, the total financial assistance from the Québec government to economic development reached in 2013-2014, $3.4 billion, and was divided into three categories according to the nature of the aid.
- Tax assistance reached $2.5 billion, or 73.5% of total aid to economic development;
- Direct budget support represented $0.5 billion or 14.7% of total aid to economic development;
- Part of this aid, or $134 million corresponded to loans and loan guarantees, which the leverage is much more important than just budgetary impact;
- Indirect budget support; that is to say, supporting organizations mandated to support economic development; reached $0.4 billion, or 11.8% of total aid to economic development.
- Twelve departments and agencies were managing 110 different programs (direct aid and indirect aid) and fifty fiscal measures, and provided support to more than 500 organizations mandated to support businesses in certain areas of intervention.
Also in 2013-2014, with GDP twice as high, Québec provided direct budget support almost as high as in Ontario and higher tax assistance to Ontario tax assistance.
Taxation Québec requires companies a significantly higher tax burden than all other Canadian provinces. This gap represents a higher tax burden of $ 3.0 billion compared to the application in Québec of Ontario's tax system. The tax burden of Québec companies is twice higher than that of businesses in British Columbia or Alberta
The Couillard government has already reduced by about $600 million in tax assistance for businesses from 2013-2014 to 2015-2016 without touching budget aid that has remained at $552 million in 2015-2016.
A CPQ government is committed to phase out tax incentives and direct and indirect support of business support and use the money saved to reduce their tax burden.