OTTAWA – According to the Canadian Federation of Independent Business (CFIB), small business owners across the country will be thrilled to see several small business friendly measures in the 2015 budget, particularly the 18 per cent reduction in the small business corporate tax rate over the next four years. This builds on earlier announcements of Employment Insurance premium relief, new measures to address credit card fees and balanced budget legislation.
“CFIB applauds the government for lowering the tax burden on Canada’s small businesses now that the budget has been balanced,” said Dan Kelly, president of CFIB. “Reducing the small business corporate tax rate was viewed by CFIB members as the most effective measure the federal government could take to strengthen the performance of small firms. We are especially pleased that government intends to legislate the full small business tax cut plan before the election.”
CFIB is very pleased several of its recommendations were included in the 2015 budget:
- Reducing the small business corporate tax from 11 to 9 per cent over the next four years. This comes after years of steady CFIB lobbying and will save small firms $2.7 billion over four years ($1.2 billion per year when fully implemented).
- Increasing the Lifetime Capital Gains Exemption for farmers and fishers to $1 million as of today. CFIB’s agri-business members have called for such a measure for many years.
- Returning the budget to balance, and introducing balanced budget legislation to protect taxpayers for the future.
- Accelerated Capital Cost Allowance (CCA) for manufacturers for the next 10 years.
- Several measures to reduce red tape, including legislating a plan to cut a regulation for every new one (1:1 rule).
- Several big changes at the Canada Revenue Agency, including less frequent remittances for new firms, a commitment to honour all written advice including the CRA website and a new CRA forum with CFIB.
- A review of passive income rules that prevent owners of campgrounds and self-storage facilities from accessing the lower small business corporate tax rate.
- Confirmation that small firms will save $550 million in lower Employment Insurance rates through the Small Business Job Credit before even larger premium cuts start in 2017.
- Significant reductions in credit card processing fees and new rules to ensure fairness in the payments industry.
CFIB gives the 2015 federal budget an “A”. “This is a terrific budget for small business,” Kelly said.
CFIB is Canada’s largest association of small and medium-sized businesses with 109,000 members across every sector and region.