Thank you, Mr. Speaker. Mr. Speaker, today I want to speak a little about tax policy. I think we have had extensive discussion on tax policy, specifically the committee the Minister is setting up to look at personal income tax, the TONI committee, I believe it is called. TONI, as we know, will allow us some flexibility in setting up our own tax regime, and we are simply following other jurisdictions.
I would like to talk a little bit about small business tax, Mr. Speaker. The media has picked up recently on some comments made by the Canadian Federation of Independent Business. I know that currently there is a review of BIP underway, and I believe recommendations have come before Cabinet.
One thing that interested me in the initial review of BIP was a comment that reducing the small business tax rate in the Northwest Territories from its current five percent to zero percent would only cost the GNWT in lost revenues $1.6 million per year, Mr. Speaker. That is not very much. It is really a minimal cost when you factor in the companies that might relocate because of the advantage and file taxes in the North.
Obviously we would not collect more taxes, but when you look at this in terms of job creation and spending from small business, I think it is clear that this is something we would want to move toward, Mr. Speaker.
The Canadian Federation of Independent Business, which apparently represents 200 northern firms, has stated that the Northwest Territories used to be an attractive jurisdiction to file taxes in, Mr. Speaker, and that is no longer the case. They have indicated that while the Northwest Territories is at 5 percent, other jurisdictions like B.C. at 4.5 percent, Ontario at 4 percent, and Alberta, the lowest at 3.5 percent, are clearly leading the pack now, Mr. Speaker.
In the past, I have also commented on thresholds for small business and suggested that we might want to look at our $200,000 per year taxable income threshold for small business and raise it to something more in line with $400,000 or so, Mr. Speaker.
At this time, I would like to urge the Minister to come forward quickly with tax relief for small business. I think we all know about the Alberta advantage but, Mr. Speaker, let us make sure that we do not get too familiar with the Northwest Territories disadvantage that they are currently talking about with regard to small business tax rates. Thank you, Mr. Speaker.
-- Applause