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Small business taxes and government spending top of mind concerns ahead of budget 2017

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Believe it or not, federal budget 2017 is fast approaching, and we’re already hard at work ensuring small business is well-represented at the table. In a time of sluggish economic growth, CFIB’s 2017 budget submission includes several ways the federal government can help create an economic environment that is conducive to growth. Our recommendations come directly from thousands of Canadian SMEs that are at the very heart of the middle-class.

CFIB has several recommendations for the upcoming budget, including:

  • Small business taxes: The reduction in the tax rate is CFIB’s top recommendation for federal budget 2017 and we recommend the government immediately reinstate the reduction of the small business tax rate from 10.5% to 9%.
  • Canada Pension Plan (CPP): To help minimize the impact of CPP premium increases, CFIB proposes an exemption of increases for the self-employed, who already pay double the rate of CPP of other Canadians. Additionally, we recommend that Quebec’s proposal to exempt additional premiums on the first $27,500 of income (instead of the current $3,500) be adopted Canada-wide.
  • Employment Insurance (EI): Extend the Small Business Job Credit beyond 2016 or consider implementing a permanently lower EI rate for small employers.
    • We also recommend that the federal government introduce the EI rebate for hiring youth in budget 2017.
  • Labour and Temporary Foreign Workers (TFWs): Move forward quickly implementing the recommendations of the HUMA committee. In addition, CFIB has proposed the TFWP be replaced with a better solution to address permanent labour shortages - an Introduction to Canada Visa which would be a first step toward permanent residency.
  • Innovation: Reintroduce a 100 per cent Capital Cost Allowance (CCA) rate for technology purchases to allow new investments by businesses in order to improve access to new technologies and help spur innovation.
  • The ease of doing business: 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.

For a complete list of recommendations, read our submission.