Here is brief look at the private sector for Canada. The private sector continues to grow, but at much slower pace.

1. ECONOMIC OUTLOOK -
PRIVATE SECTOR - CANADA -
OCTOBER 2017
PAUL YOUNG CPA, CGA
OCTOBER 13, 2017

2. PAUL YOUNG - BIO
• CPA, CGA
• Financial Solutions
• SME – Business Process Changes
• SME – Risk Management
• SME – Close, Consolidate and
Reporting
• SME – Public Policy
• SME – Financial Solutions
• SME – Supply Chain Management
• Academia – Advance Accounting,
Public Finance and Advanced
Management Systems
Contact information:
Paul_Young_CGA@Hotmail.com

3. AGENDA
• GDP Growth rates for Canada
• GDP Expansion including growth rates
• SME vs Large Corporation
• Profit Margins
• Corporate Debt
• Capital Spending
• Small Business blogs

4. ECONOMIC EXPANSION
Source - https://economics.cibccm.com/economicsweb/cds?ID=3905&TYPE=EC_PDF

5. SME VS CORPORATION
Source - https://economics.cibccm.com/economicsweb/cds?ID=3905&TYPE=EC_PDF or
https://economics.bmocapitalmarkets.com/economics/outlook/20171010/nao.pdf
Area SME Large Corporation
Employment growth (past
two years)
1.0% 2.5%
Economic Growth 2.0% 2.2%
BMO Economics – October 10, 2017

6. SME PROFIT MARGINS
Source - https://economics.cibccm.com/economicsweb/cds?ID=3905&TYPE=EC_PDF
Issues at Hand:
• High hydro rates
• Changes to minimum wage (Ontario and
Alberta
• Carbon Taxation (All provinces 2018)
• Hikes to CPP (2019)
• Hikes to other taxes and users fees

7. CORPORATE DEBT
Source - https://economics.cibccm.com/economicsweb/cds?ID=3905&TYPE=EC_PDF

8. CAPITAL SPENDING
Source - https://economics.cibccm.com/economicsweb/cds?ID=3905&TYPE=EC_PDF

9. REBUTTAL#1 - SMALL BUSINESS
• http://vancouversun.com/news/national/broken-promise-to-cost-small-business-2-2-billion That budget called for the
rate to dip to 10.5 per cent on Jan. 1, 2016. The rate would then be lowered a half-percentage point annually until it
reached nine per cent on Jan. 1, 2019.
• Both the NDP and Prime Minister Justin Trudeau’s Liberals endorsed the measure in their 2015 election platforms.
• But Finance Minister Bill Morneau announced a retreat in his 2016 budget, tabled on March 22, saying this year’s cut to
10.5 per cent would be allowed, but the others would be “deferred.”
•
• The 2016 tax trim, according to finance department figures made public Monday, will save small Canadian businesses
$50 million this year. But not going ahead with subsequent reductions will cost the sector $2.2 billion — starting with
$125 million in 2017-18, $475 million in 2018-19, $770 million in 2019-20, and $825 million in 2021, according to
Morneau’s department.
•
• Trudeau is the one that called small business owners as tax cheats, right? https://www.youtube.com/watch?v=fWJiPE-
jEDU –

10. REBUTTAL#2 – SMALL BUSINESS TAX CHANGES
• Morneau also talk dead cash, right? I have savings which is set up for purchases down the road. What's stopping
Morneau going after my savings?
• Harper had it right that was with TFSA accounts to encourage people to save. The fact was TFSA are being used
by many people including owners in small business. http://business.financialpost.com/personal-
finance/tfsa/exclusive-canadians-maxing-out-their-tfsas-from-all-walks-of-life
• Trudeau and his party condemned people for not saving enough moneys -
https://www.liberal.ca/realchange/justin-trudeau-on-fairness-for-the-middle-class/ “But it doesn’t feel like that
anymore.
• And parents are worried – not only about their children’s future, but often, even about their own jobs. So,
people should make a choice between paying for their kids’ education and saving for their retirement. That’s not
right.
• When I hear from families like yours, they feel like no one is on their side. And no wonder.
• It is OK for large businesses to sit on cash, but not small business -
https://www.slideshare.net/paulyoungcga/cash-holding-canada-2017. How is that fair
• Small business has limited budgets as such more regulatory filings and taxes just add to their already
overburden. https://www.slideshare.net/paulyoungcga/small-business-canada-pain-points-october-2017
• Yet CD Howe institute said Canadians were saving for retirement - http://www.cbc.ca/news/business/canadians-
are-saving-enough-for-retirement-says-c-d-howe-study-1.3100653

11. SMALL BUSINESS / JUSTIN TRUDEAU
• https://www.youtube.com/watch?v=8yH-Ep4Kj-c
• Trudeau makes the comment a tax system that Harper poorly managed for 10+ years. Yet Stephen Harper reduced both income tax rates and
GST over his term in office. https://globalnews.ca/news/1356467/tax-cuts-since-2005-net-canadians-30b-pbo/
“Another gift to the government in the report was that the PBO found that in relative terms — lower income Canadians earning between
$12,200 and $23,300 benefited the most, increasing their after-tax income by four per cent.
• Painpoints for small business - https://www.slideshare.net/paulyoungcga/small-business-canada-pain-points-october-2017. Small business
continues to be slammed with bad after bad policies.
• You also do not tax people to prosperity. Canada has income inequality problem as do countries around the world. You do not fix income
inequality with one off policies. https://www.slideshare.net/paulyoungcga/income-inequality-canada-september-2017 Canada had the best
middle class in 2014 - https://www.youtube.com/watch?v=QgbHWFgmSfQ&t=39s
• I like to know where in the world has hiking taxes grown an economy? https://www.youtube.com/watch?v=hWarBMfshaA. So, the liberals
think their tax proposal will grow the economy, right? The Liberals also are forcing a national carbon taxation -
http://business.financialpost.com/commodities/energy/ottawas-carbon-tax-plan-to-shrink-economy-by-3-billion-hurt-loonie-in-2018-study.
Australia removed the carbon tax as it was too punitive to the economy and did not reduced emissions -
http://www.cbc.ca/news/canada/saskatoon/australian-carbon-tax-opponent-chris-berg-saskatchewan-1.3884765
• Trudeau also discusses the same comments on GDP which he is also not entirely correct. https://www.slideshare.net/paulyoungcga/gdp-
economy-canada-july-2017 or https://www.slideshare.net/paulyoungcga/truth-gdp-canada-september-2017 (See slide 3). Harper had 2.3%
GDP growth on average after the 2008-2009 recession which is like what Trudeau has achieved for 2016 and 2017. It would be nice if MSM
would call out Trudeau when it comes to misinformation on the economy!!!

12. • Here is more information on Harper:
• Harper did not just focus on tax cuts including corporate tax, but also set up innovation funds and sign
trade deals to expand exports. https://www.slideshare.net/paulyoungcga/wealth-distribution-canada-
corporate-tax-july-2017. Trudeau was elected and said he will focus on clean technology, right?
https://www.liberal.ca/wp-content/uploads/2015/08/A-new-plan-for-Canadas-environment-and-
economy.pdf The problem is clean technology companies are not making money, right?
http://www.bnn.ca/awash-in-red-ink-canadian-clean-tech-struggling-despite-ottawa-s-green-goals-
1.729679
• Harper created many innovation funds, sign trade agreements, expanded ports like Montreal, Prince
Rupert, etc. Harper was all about getting goods to market. More could have been done, but pipelines as
well as lack of priorities by governments including Ontario on natural resource development set Harper
back - https://www.slideshare.net/paulyoungcga/merchandise-trade-canada-july-2017
• I see nothing in proving your point that tax cuts do not work. All I see is opinion. So, I suggest provide a
source or shut up. If you realised a couple things about world it is very global now. Canada needs to be
competitive when it comes to attracting foreign capital. If you look at Harper’s policies then you will see
he did not focus on one area, but many areas like innovation, trade, FIPA, capping the growth in payroll
taxes, etc. http://ottawacitizen.com/storyline/head-of-canadas-largest-manufacturing-association-says-
tories-have-supported-the-sector or https://www.slideshare.net/paulyoungcga/manufacturing-sector-
canada-june-2017
• Do you own RRSP? You have CPP deducted, right? Where does pension money go? It goes to profitable
companies, right? http://www.cbc.ca/news/business/cpp-pension-earnings-1.4243308
• You treat corporation with other distaste, but I bet you shop at grocery store, drive a car, own a cell
phone, rent/own a house, right? You would not have these luxuries without corporations.
• I see you are also talking about the bailout, right? Harper was forced into bail out.
http://www.autonews.com/article/20160907/OEM01/160909877/co-directors-tell-why-they-made-
auto-bailout-documentary
• I have explained many times about deficit and debt, but you will never read the links.
https://www.slideshare.net/paulyoungcga/federal-government-debt-canada-august-2017 or
https://www.slideshare.net/paulyoungcga/canada-cpc-and-liberals-surplus-debate
Rebuttal – Liberal Supporter