Canadian SMEs Seeking Tax Cuts At Budget
Thursday, March 16, 2017
The Canadian Federation of Independent Business (CFIB) has called on the Government to reduce the small business tax rate at the upcoming Budget.
Prior to its election, the Liberal Party had pledged to reduce the small business tax rate to nine percent. The 2016 Budget deferred any such cuts. The rate is currently 10.5 percent.
Announcing the CFIB's priorities for Budget 2017, its President, Dan Kelly, said: "We are calling on the federal Government to make good on its own promise to reduce the small business rate to nine percent. This would be one key measure the Government could employ to help spur innovation and offset the impact of a Canada Pension Plan increase and carbon pricing."
"The federal Government needs to show small business owners that it understands the challenges the face by introducing policies and measures in federal Budget 2017 to help SMEs build the confidence they need to grow their business," he added.
Also on the CFIB's wish list is an "Innovation Deduction" that would allow businesses to claim up to CAD100,000 (USD75,139) per year spent on new equipment or technology in the year of purchase. In addition, the CFIB said that the Government should extend the Small Business Job Credit (an Employment Insurance (EI) relief) or consider implementing a permanently lower EI rate for small employers.