Small businesses are calling on the federal government to reduce taxes, incentivize investment and improve Canada’s entrepreneurial environment in its spring economic statement on April 28, says the Canadian Federation of Independent Business (CFIB).
“The government is too often focusing its policies on big businesses while ignoring Main Street. Government officials don’t know which business may be the next Lululemon, Shopify or Couche-Tard. Give all Canadian-born companies, of all sizes, a better chance to not just survive but thrive,” said Corinne Pohlmann, CFIB executive vice-president of advocacy.
“We’ve had six consecutive quarters of more businesses closing than entering the market, which means Canada is in an entrepreneurial drought, and it’s time government paid attention to small businesses.”
The CFIB said 73% of small firms say they are not confident that the federal government has their back as a business owner.
CFIB has sent a letter to Minister Champagne, urging the government to address Canada’s declining level of entrepreneurship and to invest in small businesses by:
- Reducing the federal small business tax rate from 9% to 6% over the next three years.
- Increasing the small business deduction threshold from $500,000 to $700,000 and indexing it to inflation
- Introducing a lower EI premium rate for smaller employers.
- Supporting succession planning by expanding existing current rollover provisions.
- Incentivizing investment by expanding Immediate Expensing and the Accelerated Capital Cost Initiative to all capital investment and sectors to let business owners choose how best to use the deduction.
- Introducing a lower capital gains inclusion rate tax on a second tranche of gains beyond the Lifetime Capital Gains Exemption (LCGE).
- Eliminating two requirements for every new one introduced to reduce the red tape burden.
“These measures would provide immediate relief, increase productivity and help small firms invest in their operations and our economy. A country that neglects its small businesses will eventually lose its economic resilience. Fewer start-ups mean less innovation and competition, and slower economic growth,” said Jasmin Guenette, CFIB vice-president of national affairs. “Government needs to use the spring economic statement to deliver policies that will help small firms and future entrepreneurs succeed.”
The CFIB is Canada’s largest association of small and medium-sized businesses with 103,000 members across every industry and region.
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