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Regina, December 10, 2018 – Small businesses are facing a not so happy new year and will have to tighten their belts to deal with a host of new taxes, including Canada Pension Plan increases, new passive investment rules and the federal carbon tax in several provinces, warns the Canadian Federation of Independent Business (CFIB). With the Finance Ministers meeting taking place in Ottawa today, CFIB is urging the ministers to delay the planned CPP expansion and the federal carbon backstop as well as to reject adopting the new federal rules for passive investment income.
CFIB is encouraged by a letter released yesterday in which the Ontario and Saskatchewan governments call on the federal government to reconsider these initiatives and study the impact on small and independent businesses.
CFIB reminds Canadians of the following tax changes:
“We’re on the precipice of an affordability crisis for small businesses,” said CFIB president Dan Kelly. “In fact, 84 per cent of small businesses in the four affected provinces (92% in Saskatchewan) say they can’t afford the federal carbon tax announced last month on top of the CPP increases starting on January 1, 2019. This is on top of the incoming passive investment rules that will make it harder for small business owners to save for retirement, economic uncertainty or upgrades to their equipment.”
In a survey of business owners in Ontario, Saskatchewan, Manitoba and New Brunswick, CFIB found that 87 per cent opposed this federal carbon tax plan (96% in Saskatchewan). In addition:
“While CFIB supports the federal government’s decisions to introduce accelerated depreciation, drop the small business tax rate to nine per cent and reduce EI premiums, the tax increases will eclipse any savings for most firms,” added Kelly.
“Small businesses need a break,” said Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business. “CFIB is calling on other provinces to join Ontario and Saskatchewan in calling on the federal government to reconsider the increase in CPP premiums set to begin in a few weeks.” CFIB is also calling on all provinces to follow Ontario’s lead and the electoral commitment of the New Brunswick government by rejecting the new federal passive investment rules.
For media enquiries or interviews with Dan Kelly, please contact Milena Stanoeva, CFIB: 647-464-2814 or at [email protected]
To arrange an interview with Marilyn Braun-Pollon, CFIB’s Vice-President, Prairie & Agri-business, please call (306) 757-0000, 888 234-2232 or email [email protected]. You may follow CFIB Saskatchewan on Twitter @cfibsk.
The Canadian Federation of Independent Business (CFIB) is Canada’s largest association of small and medium-sized businesses with 110,000 members (5,250 in Saskatchewan) across every industry and region. CFIB is dedicated to increasing business owners’ chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at cfib.ca.