The Board of Trade welcomes the fiscal compromise that limits anticipated adverse effects.

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Added on 10 October 2012 in Press releases

Press release

The Board of Trade welcomes the fiscal compromise that limits anticipated adverse effects

Montréal, October 10, 2012 – The Board of Trade of Metropolitan Montreal supports the fiscal compromise announced today by the Minister of Finance and the Economy, Nicolas Marceau. “We are reassured to see that the Government of Quebec has taken note of the business community’s concerns with respect to tax measures and that it has made major adjustments to its proposals,” said President and CEO of the Board of Trade, Michel Leblanc. “The fiscal compromise proposed by the Minister of Finance eliminates for this year the damage that would have resulted from the aggressive tax measures that were being considered.”

“We are relieved to see that the government has confirmed that it is abandoning the retroactive measures,” Michel Leblanc said. “This shows that it respects the fiscal contract between the state and its citizens.”

“We also approve its decision not to increase taxes on capital gains or reduce the tax credit on dividends,” Mr. Leblanc said. “These measures would have discouraged entrepreneurship, savings and investment and undermined a wealth creation strategy for Montréal and Quebec.”

“However, the Board of Trade cannot support the planned hike in marginal tax rates on high revenue for 2013, even if it is more modest than previously announced and respects the critical psychological barrier of 50%,” Mr. Leblanc said. “Combined with the progressivity of the new health contribution, this hike will increase the tax burden for high income earners. A competitive fiscal framework for entrepreneurs and high income earners is essential for retaining and growing our head offices.”

“We also encourage the government to stay the course for a balanced budget in 2013-2014,” Michel Leblanc said. “This is essential to bolster the confidence of investors and financial institutions and maintain a favourable credit rating. We encourage the government to reduce spending and would like to reiterate our offer of support to identify avenues that will allow it to achieve a balanced budget while stimulating entrepreneurship and job creation.”

About the Board of Trade of Metropolitan Montreal
The Board of Trade of Metropolitan Montreal is made up of some 7,000 members. Its mission is to represent the interests of the business community of Greater Montréal and to provide individuals, merchants, and local businesses of all sizes with a variety of specialized services to help them achieve their full potential in terms of innovation, productivity, and competitiveness. The Board of Trade is Quebec's leading private economic development organization.

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Source:
Sylvie Paquette
Advisor, Media Relations
Board of Trade of Metropolitan Montreal
Phone: 514 871-4000, extension 4015
spaquette@ccmm.qc.ca

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