Spring economic update has very few measures that offer immediate help for small business owners: CFIB
Indo-Canadian Voice Spring economic update has very few measures that offer immediate help for small business owners: CFIB posted by: Rattan MallTHE federal spring economic update includes some welcome measures, but it is not enough to halt the alarming loss of small businesses across Canada, according to the Canadian Federation of Independent Business (CFIB). “The economic update continues the federal government’s focus on investments in major projects and large companies, with small and medium-sized firms stuck […] The post Spring economic update has very few measures that offer immediate help for small business owners: CFIB first appeared on Indo-Canadian Voice.Indo-Canadian Voice
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THE federal spring economic update includes some welcome measures, but it is not enough to halt the alarming loss of small businesses across Canada, according to the Canadian Federation of Independent Business (CFIB).
“The economic update continues the federal government’s focus on investments in major projects and large companies, with small and medium-sized firms stuck in the same old mix of red tape and high taxes,” said Dan Kelly, CFIB president. “I don’t see much that will help Canada avoid a seventh quarter in a row of losses in the net number of small businesses. We need action to stop Canada’s entrepreneurial drought.”
“Giant funds, like the proposed Canada Strong Fund, have been tried in past budgets, without moving the economic growth needle,” Kelly added. “What worries me is that Ottawa is trying to stimulate things for a few by using tax dollars and exemptions from normal rules, while ignoring the tougher job of encouraging entrepreneurship and facilitating growth in smaller businesses. CFIB will continue its call for a significant reduction in the small business corporate tax rate.”
He said: “The spring update does have one big win for small business – a significant reduction in Canada Pension Plan (CPP) premiums paid by employers and employees.” Small firms are payroll intensive, and a cut in the premium rate from 9.9% to 9.5% will put $3 billion back into the pockets of employees and payroll budgets of employers. This is good news and helps offset the unwelcome projected increase in Employment Insurance (EI) rates.
The other positive measures in today’s update include major changes to Canada’s apprenticeship supports focused on the trades. “As long as we can keep the paperwork and red tape light, the new Apprenticeship Grant and $10,000 wage incentive for employers should be a big boost for small firms involved in Canada’s trades,” Kelly added.
CFIB said it is very pleased the government listened to its request to make the new Employee Ownership Trust tax exemption permanent. “Employee ownership is a great way to provide more options for entrepreneurs when they are looking to sell,” Kelly said. “Making this measure permanent will help ensure this measure is considered by more small business owners.”
He said: “While it is welcome news that the current year’s deficit is projected to be smaller than in the fall budget, it is worrisome there is no plan to return to a balanced budget. Government is projecting deficits over $50 billion for as far as the eye can see and small firms have learned the hard way that today’s deficits become tomorrow’s taxes.”
Kelly said: “Small business confidence in the economy remains incredibly low given the massive uncertainty over tariffs and energy prices. While progress was made on a few fronts, there were very few measures that will offer immediate help for small business owners trying to keep the lights on.”
The post Spring economic update has very few measures that offer immediate help for small business owners: CFIB first appeared on Indo-Canadian Voice.Indo-Canadian Voice
