Change would reduce the small business tax rate from three to two percent
CALGARY – The Canadian Federation of Independent Business welcomes amendments to Bill 2 An Act to Restore Fairness to Public Revenue that would reduce the small business income tax rate to from 3 per cent to 2 per cent. CFIB has long advocated for a reduction in the small business corporate income tax rate and encourages the government to adopt the amendments proposed by the opposition parties.
“In the context of the tough economic times entrepreneurs in Alberta are facing, every little bit helps. Small business owners’ need some relief as they face big hikes in labour costs and the uncertainty of the current business environment. This is a real opportunity for the NDP government to show they are focused on the needs of entrepreneurs”, said Amber Ruddy, Senior Policy Analyst for CFIB.
Neighbouring provinces have been reducing the small business rate. Alberta has the highest rate in western Canada at 3%, with British Columbia at 2.5%, Saskatchewan 2%, and Manitoba at 0%.
Over the years, the NDP, Alberta Liberals, Alberta Party, and Wildrose have all expressed an interest in reducing the rate. In fact, the NDP was the only party in the 2012 provincial election campaign to propose a reduction in the small business rate.
“Political parties across the spectrum recognize the important role independent businesses play, so it is a no-brainer to reduce the small business tax rate to help protect the competitive position for entrepreneurs in our province”, concluded Ruddy.
CFIB is Canada’s largest association of small- and medium-sized businesses with 109,000 members across every sector and region.