Toronto, March 21, 2017 – Senior representatives of the Canadian Federation of Independent Business (CFIB) will be available for comment immediately following the release of the federal budget tomorrow. CFIB president Dan Kelly and senior vice-president Martine Hébert will both be available in Ottawa to discuss the impact of the budget on small business.
On behalf of over 109,000 small and medium-sized businesses across the country, CFIB has made several recommendations for this year’s budget, including:
- Small business taxes: The reduction in the tax rate from 10.5% to 9% (as was promised by the government during the 2015 election) is CFIB’s top recommendation for federal budget 2017. CFIB urges government not to further narrow the access to the lower rate.
- Capital gains taxation: CFIB urges government not to raise taxation on capital gains by either increasing the inclusion rate or reducing the lifetime capital gain exemption. This would serve to kill innovation by discouraging risk taking.
- Employment Insurance (EI): Extend the Small Business Job Credit or consider implementing a permanently lower EI rate for small employers. CFIB also recommends government deliver on its campaign promise to introduce an EI holiday for hiring youth.
- Innovation: Introduce an “Innovation Deduction” that would allow businesses to claim up to $100,000 per year spent on new equipment or technology, in the year of purchase. 82% of small business owners believe such a policy would be helpful for their business.
- Labour and Temporary Foreign Workers (TFWs): Adopt CFIB’s proposed solution to address permanent labour shortages - an Introduction to Canada Visa, a first step toward permanent residency.
- Reduce red tape: 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.
Read CFIB’s full pre-budget submission.
CFIB is Canada’s largest association of small and medium-sized businesses with 109,000 members across every sector and region.