Winnipeg, February 12, 2018 – Fairer tax measures and incentives for innovation and youth hiring are at the top of small business owners’ priorities for the upcoming federal budget, submitted by the Canadian Federation of Independent Business (CFIB).
“With tax season rapidly approaching, Canadian small business owners are telling us that the government’s proposed tax changes are still top of mind. There is not enough clarity on the new income-sprinkling rules, and we remain concerned that the proposed passive rules will hurt owners’ ability to save and reinvest in their business,” said Dan Kelly, CFIB’s president. “We’re urging the government to listen to the Senate’s recommendations and put off implementing any tax changes until they fully analyze the impacts of these changes on the economy.”
It is especially critical that Canada support its small businesses to remain competitive as the United States introduces business-friendly tax reforms.
CFIB is calling for the government to help spur innovation and productivity in the small business sector by introducing an expense deduction for investments in new technology or equipment, similar to a $1,000,000 deduction that is already available to small firms in the United States.
“One of the major barriers to small business innovation is cost,” added Kelly. “Providing some tax relief against purchases of new technologies will help small businesses hire more people, pay higher wages and be even more productive contributors to Canada’s economic growth.”
With payroll taxes, such as CPP, increasing for the next seven years and sharp minimum wage increases across the country, small businesses are also looking to the federal government to provide some relief for their skyrocketing labour costs.
“With so many payroll costs going up, youth hiring plans are the first thing on the chopping block,” said Corinne Pohlmann, CFIB’s senior vice-president, national affairs. “We’re looking to government to help offset those costs and reinstate their promise to provide an ‘EI holiday’ for youth workers to help small businesses continue to hire more young Canadians.”
CFIB is meeting with government officials as well as key critics and MPs from the opposition parties to present small business’ recommendations for the budget.