THUNDER BAY, ON – “Lowering the small business tax will ensure that small business owners in Thunder Bay-Superior North have more money in their pockets at the end of the year so they can save, invest, create more jobs and grow our economy,” Thunder Bay Superior North MP Patty Hajdu said.
Today, Prime Minister Justin Trudeau, Finance Minister Bill Morneau, and Small Business and Tourism Minister Bardish Chagger announced that our government is fulfilling its commitment to lower taxes on small businesses, from 11 percent in 2015 to 9 percent by 2019.
To support this change, the Government will be moving forward on changes to the tax system that will ensure that Canadian-Controlled Private Corporation (CCPC) status is not used to reduce personal income tax obligations for high- income earners rather than supporting small businesses. This will include limiting the ability of largely high-income owners of CCPCs to lower their personal income taxes by spreading their income with family members who do not work in the business.
Hon. Patty Hajdu, says she heard and carefully considered the views and perspectives of small businesses owners, organizations such as the Thunder Bay Chamber of Commerce, and experts.
“The cut to the small business tax rate and the cancellation of changes to capital gains exemptions are welcome news for small business owners and operators in Thunder Bay,” says Charla Robinson, President of the Thunder Bay Chamber of Commerce. “We are pleased that the Government is taking steps to further support hardworking small businesses in Thunder Bay and across the country.”
As Canadians celebrate Small Business Week, Chamber representatives congratulate the thousands of businesspeople who joined the mobilization and made their voices heard on this important issue affecting Canadian workers and employers.
The Thunder Bay Chamber also noted the Minister’s call for further input from Canadian businesses and intends to continue providing a voice to ensure the tax system is simpler and less of a burden on Canada’s competitiveness.
“It is always more productive when government and business work together. We can only hope the government will listen as we provide advice on those areas where more remains to be done, and that they will propose concrete data to back up their claims. The Canadian Chamber will be working with the Thunder Bay Chamber and other chambers across the country for suggestions on reforms that can improve the competitiveness of Canada’s tax system. Lowering the small business tax rate is one such measure, but there is still much room for improvement,” says Perrin Beatty, President/CEO of the Canadian Chamber of Commerce.
Beatty adds, “We must ensure that Canada, and with it Thunder Bay, remain attractive places to do business. Although there is a great deal of work to be done, today’s announcement is a positive first step, but we expect more and we will be vigilant on the next steps.”
Today it was announced that based on the consultations in ridings like Thunder Bay-Superior North and across Canada, the Government will not be moving forward with proposals to limit the multiplication of the Lifetime Capital Gains Exemption.
In the coming days, the Government will announce further steps towards fairness for the middle class that will also take into account feedback received from Canadians during the consultation period. The modified proposals will ensure the measures are focused on a small number of wealthy individuals who get the biggest advantage from existing rules.
- Only an estimated 50,000 family-owned private businesses are sprinkling Only a portion of these families would be affected by the proposals to ensure tax fairness.
- CCPCs will benefit from a combined general corporate tax rate that is at least 12 percentage points lower than Canada’s largest trading partner, the United
- Small businesses in Canada will benefit from support that includes a reduced federal income tax rate of 9 per cent on their first $500,000 of active business
- The combined federal-provincial-territorial average tax rate for small business will be 9 per cent, by far the lowest in the G7 and fourth lowest among Organisation for Economic Co-operation and Development countries. Small businesses can retain more of their earnings to reinvest, supporting growth and job creation.
- Lowering the small business tax rate will save small business owners between $7,500 and $1,609
- In the course of the consultations, over 21,000 written submissions were received by the Department of Finance