Caroline Wawzonek

Thank you, Madam Chair. This is not an occasion where there will be a commensurate raising of taxes or introduction of a new tax to directly offset the $1.4 million revenue loss. What is hoped, however, is that, by helping the sector become more competitive and helping small businesses be more competitive, we will see economic growth, which then can ultimately help create more taxpayers in the form of more small businesses, which can hopefully offset the revenue lost from the tax rate change. Thank you, Madam Chair.

Thank you, Madam Chair. We are a little bit behind some of the other jurisdictions in terms of our business tax rate for small businesses. This finally is an opportunity to bring us a little bit more in line and make us more competitive with some of our colleagues across the rest of Canada. Up to this point, we were at or near, in fact, the very top of the pile. This is an opportunity to, again, make us more competitive, and it's a good time. I think one of the MLAs has already mentioned that it's an opportunity to give a bit of release at an occasion and during a context where there has been...

Yes, Madam Chair.

I'll take the positives out of that, Madam Chair, and leave it there. Thank you.

Thank you, Madam Chair. Yes, we will certainly make sure that there's a more fulsome discussion around what the tax impacts could be for introducing or otherwise modifying tax rates. Thank you.

Thank you, Madam Chair. At this point in the course of where we're at in our response to the pandemic and recovery from the pandemic, there was certainly a conscious decision that there would not be new taxes introduced in this particular budget, and there are no new taxes introduced in this particular budget. That's sort of a short-term response. I understand that the question really is looking at something much larger and much broader, and I have made inquiries with the department to look into what impacts there would be on individuals if we were to increase the tax burden for certain filers...

Thank you, Madam Chair. I believe the reduction is approximately $1.4 million.

Thank you, Madam Chair. Madam Chair, on my left is Kelly Bluck, director of fiscal policy from the Department of Finance, and on the right, Cherie Jarock, legislative counsel with the legislation division from the Department of Justice.

Thank you, Madam Chair. I am here to present Bill 16, An Act to Amend the Income Tax Act. The main purpose of Bill 16 is to reduce the tax burden on our small businesses by reducing the small business tax rate from 4 percent down to 2 percent. With this reduction, Northwest Territories small businesses will incur a tax rate of 2 percent on taxable income under $500,000. Any taxable income over $500,000 will continue to be subject to the general corporate tax rate of 11.5 percent. This proposed measure will become effective on January 1, 2021.

We are also taking this opportunity to propose two...

Thank you, Madam Chair.