The Sault Ste. Marie Chamber of Commerce (SSMCOC) and the Canadian Chamber of Commerce (CCC) welcome the federal government’s plans to revise its proposed tax reforms and to reduce the small business tax rate as a result of the comments and concerns expressed through the national #ProtectGrowth campaign and in consultations.
Sault Ste. Marie Chamber of Commerce President, Jason Naccarato welcomes the news that the federal government is taking a step back on the proposed tax reforms, particularly as they relate to small business. “We applaud the government for listening to the concerns of small business owners, entrepreneurs and even caucus members. The new measures proposed Monday, while not perfect, appear to be more balanced. We will be vigilant on their details and application, however.”
Although the Sault Ste. Marie Chamber of Commerce still has significant reservations on some of the proposed changes, the lobbying efforts of the Canadian Chamber network were successful and the Minister of Finance appears to have made a noteworthy effort to take the opinion of small businesses into consideration in the new version of his proposed tax changes.
On Monday, Finance Minister Bill Morneau announced a cut to the Federal small business tax rate of 10.5% to 9% by 2019. Additional details are still to be outlined in full, but the government said on Monday that it will be revising its proposals in relation to income sprinkling, which allows a small-business owner to split income among family members. It also noted that sections of the proposed changes limiting access to the lifetime capital-gains exemption are being removed in response to concerns that it would negatively affect the transfer of family businesses from parents to children.
The Sault Ste. Marie Chamber of Commerce notes the Minister’s call for further input from Canadian businesses, and intends to continue providing a voice to ensure the tax system is simpler and less of a burden on Canada’s competitiveness.
“The Canadian Chamber of Commerce and its local members, including the SSMCOC, remain open to working with the government to ensure that these new proposed measures are more balanced and will accomplish their intended goal of providing a fairer tax system to Canadians, without hurting small businesses,” says Rory Ring, CEO of the Sault Chamber.
As Canada celebrates Small Business Week, Chamber representatives congratulate the thousands of businesspeople who joined the mobilization and made their voices heard on this important issue affecting Canadian workers and employers.
“It is always more productive when government and business work together. We can only hope the government will listen as we provide advice on those areas where more remains to be done, and that they will propose concrete data to back up their claims. The Canadian Chamber will be working with chambers of commerce from across the country, including the Sault Ste. Marie Chamber, for suggestions on reforms that can improve the competitiveness of Canada’s tax system. Lowering the small business tax rate is one such measure, but there is still much room for improvement,” says The Honourable Perrin Beatty, President & Chief Executive Officer of the Canadian Chamber of Commerce.
“We must ensure that Canada, and with it, cities like Sault Ste. Marie, remain attractive places to do business. Although there is a great deal of work to be done, Monday’s announcement is a positive first step, but we expect more and we will be vigilant on the next steps,” Beatty concludes.