Parliament rises without delivering for small businesses – again: CFIB

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Nearly three in four (73%) of small firms say they don’t feel supported by the federal government, and this last parliamentary session did little to change that, according to the Canadian Federation of Independent Business (CFIB).

Corinne Pohlmann
Corinne Pohlmann

“Parliament may be taking a summer break, but small business owners don’t get one. Ottawa has had every opportunity to lower the costs of doing business this past session, but it chose not to,” said Corinne Pohlmann, CFIB executive vice-president of advocacy. “Government has been all too willing to move quickly on large-scale projects for big businesses, but it has lacked the same ambition when it comes to small firms.”

While the spring economic update contained a few positive measures, such as a reduction in Canada Pension Plan (CPP) premiums and the Employee Ownership Trust tax exemption being made permanent, it didn’t do much to improve small business conditions, said Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.

Most (58%) small firms continue to feel pressure from rising fuel costs, with taxes squeezing margins for nearly half (48%). Four in ten (43%) also say economic/political uncertainty and other operating costs are making it difficult to do business, according to new CFIB data.

Over half (55%) say they wouldn’t recommend starting a business right now. CFIB said it is urging Ottawa to return in the fall with a real focus on Main Street, starting with: Reducing the federal small business tax rate from 9% to 6%; increasing the small business deduction threshold to $700,000; introducing a lower Employment Insurance premium rate for smaller employers; and bringing in a two-for-one rules to federal regulations to jumpstart regulatory modernization.

Jasmin Guénette
Jasmin Guénette

“With Canada facing an entrepreneurial drought, government needs to encourage entrepreneurship, not ignore it. Small firms need meaningful tax relief, less red tape, and a government that acts,” said Jasmin Guenette, CFIB’s vice-president of national affairs.

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