The Case Against Capping Success: Why Taxing Large Employers is a Bad Idea

As we navigate the complexities of our economy, it’s essential to recognize that there is no one-size-fits-all solution for success. In a capitalist economy, the number of large companies in various sectors will be determined by market forces, not government intervention.

No Restriction on Market Size

In Canada, there are no restrictions on the number of large companies that can exist in most sectors. If there’s a business case for launching new competitors or developing disruptive technologies, entrepreneurs can do so with ease. This is because our country values free enterprise and competition.

Encouraging Ambition and Innovation

We should be encouraging smaller enterprises to think big and grow into internationally competitive firms. Instead of stifling ambition and innovation through discriminatory policies, we should create an environment that fosters growth and competitiveness.

Current Economic Policies: A Threat to Growth

Unfortunately, Canada’s current economic policies don’t align with these free market principles. The federal government’s decisions are downsizing Canadian companies through a combination of higher taxes, regulatory red tape, and capricious changes to competition laws.

The Deterrent Effect of Taxes and Regulations

These "big is bad" policies deter more business investment than they attract. Private sector employers worldwide won’t invest or stay in markets where governments actively intervene to cap profits or cut their market share. Imposing additional taxes on after-tax profits would be another nail in the coffin for business investment in Canada.

Taxing Large Employers: A Misguided Approach

To clarify, the federal government has ruled out limiting the market share of small to medium-sized companies or taxing their profits above a specified percentage. These quotas are reserved for Canada’s largest employers – those with the most workers.

Protecting Workers, Not Prejudicing Them

Any politician who claims to support workers should not single out Canada’s largest employers and the more than 4.4 million Canadians they employ. To prejudice those workers based on the size of the company they work for isn’t free enterprise; it’s futile intervention.

Conclusion

Lower performing, less profitable companies employ fewer Canadian workers. Goldy Hyder, CEO of the Business Council of Canada, argues that we should celebrate and not attack companies’ success. By promoting an environment that fosters growth, competitiveness, and innovation, we can create a thriving economy that benefits all Canadians.

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