CFIB Concerned About Small Biz & Income Taxes Ahead Of Budget
WINNIPEG, MB – The Canadian Federation of Independent Business (CFIB), is sharing their list of recommendations to the federal government for the 2017 budget.
The CFIB wants a small business tax cut to be a priority, and are concerned that fewer business may have access to lower tax rates. There are also concerns about potential capital gains tax increases.
Additionally, CFIB President Dan Kelly expressed concerns about the deficit. “Debt and deficit reduction has now become the second highest priority for Canadian small business owners, just behind the total tax burden,” said Kelly. “This year, it is essential that we see a map toward balanced budgets.”
Here are some of the CFIB’s recommendations:
- Small business taxes: The reduction in the tax rate from 10.5% to 9% (as was promised by the government during the 2015 election) is CFIB’s top recommendation for federal budget 2017. CFIB urges government not to further narrow the access to the lower rate.
- Employment Insurance (EI): Extend the Small Business Job Credit or consider implementing a permanently lower EI rate for small employers. CFIB also recommends government deliver on its promise to introduce an EI holiday for hiring youth.
- Introduce an “Innovation Deduction” that would allow businesses to claim up to $100,000 per year spent on new equipment or technology, in the year of purchase. 82% of small business owners believe such a policy would be helpful for their business.
- Labour and Temporary Foreign Workers (TFWs): Adopt CFIB’s proposed solution to address permanent labour shortages – an Introduction to Canada Visa, a first step toward permanent residency.
- Reduce red tape: In order to further reduce the burden imposed on small business, the one-for-one rule – for every new requirement that the government introduces, one of equivalent burden must be removed – should be broadened to include rules found in policy and legislation.
Spencer Fernando, MyToba News