Tax Cuts For Small Business Owners
Recently Prime Minister Stephen Harper announced that the government is further reducing taxes for small businesses.
He was joined by Candice Bergen, Minister of State, Social Development and Member of Parliament for Portage-Lisgar, and Lawrence Toet, Member of Parliament for Elmwood-Transcona for the announcement,
“Our Government recognizes that small businesses are the economic lifeblood of our communities, and when they succeed, they spur the growth of our towns and cities. That is why Economic Action Plan 2015 proposes to cut the federal small business tax rate, which will help hundreds of thousands of small businesses across the country to create jobs and economic growth,” said Prime Minister Harper.
The Economic Action Plan 2015 proposes to reduce further the federal small business tax rate to nine per cent by 2019, with the first reduction taking effect in 2016.
This will benefit almost 700,000 small businesses annually from coast to coast to coast, providing them with additional resources to help spur job creation and economic growth.
The tax reductions for small businesses proposed in Economic Action Plan 2015 have been made possible by balancing the budget.
According to Harper, this announcement is only one of the many measures that the government has taken to help small businesses. Other initiatives include providing a Small Business Job Credit, embarking on the most ambitious trade agenda in Canadian history, reducing red tape, launching the New Building Canada Plan and creating the Canada Job Grant.
Economic Action Plan 2015 proposes to reduce further the small business tax rate to 10.5 per cent in 2016, 10 per cent in 2017, 9.5 per cent in 2018 and nine per cent in 2019.
It is estimated that cutting the small business tax rate to nine per cent by 2019 will reduce federal taxes for small businesses and their owners by $2.7 billion over the 2015-2016 to 2019-2020 period.
When the proposed reduction takes full effect in 2019, the amount of federal corporate income tax paid by a small business with $500,000 of taxable income will be 46 per cent lower than in 2006.
The Economic Action Plan 2015 proposes to further support small businesses and their owners by improving access to financing for Canadian small businesses, expanding services of the Business Development Bank of Canada and Export Development Canada to help small- and medium-sized enterprises.
The Plan should also increase access to venture capital financing to help innovative, high-growth companies grow and create jobs through providing $14 million over two years to Futurpreneur Canada in support of young entrepreneurs, and supporting the Action Plan for Women Entrepreneurs to help women business owners succeed.
Since 2006, the Government has taken significant action to support job-creating small businesses by lowering taxes, cutting red tape and encouraging entrepreneurship. This includes reducing the federal small business tax rate from 13.12 per cent to 11 per cent and increasing the amount of annual income eligible for this lower rate from $300,000 to $500,000.
Get More! Receive six issues of Canadian Military Family Magazine in your mail box for only $17.95! Click here to subscribe NOW!