(OTTAWA) October 16, 2017 –
“I am pleased that Finance Minister Bill Morneau has decided to embrace lower[ing] the small business tax rate to 9 per cent,” said Elizabeth May. “I called for this tax change several weeks ago, and it appears that on this issue, the government is listening.
“Still, while today’s announced tax changes are an improvement on the catch-all proposals that threatened small businesses, Minister Morneau has done nothing to address the bargain-rate taxes for large corporations.
“Under Stephen Harper, corporate taxes dropped to 15 per cent, the lowest rate amongst G7 countries. By restoring the federal corporate tax rate to only 19.5 per cent, the Liberals will find much-needed revenue. For context, the corporate tax rate in 2000 sat at 28.5 per cent, while the U.S. currently taxes its large corporations at 34 to 37 per cent.
“Any tax changes that impact small businesses require more time to phase in restructuring. The government could avoid backlash like this in future if the House votes to adopt my Private Member’s Bill (PMB), the Creation of the Small Business Impact Assessment Act, which requires advance review and evaluation of the impact of all government measures on small business,” Ms. May said.
Ms. May’s PMB C-682 would amend the Department of Industry Act to establish a mandatory review of the potential impact any proposed government bill or regulation would have on small businesses. A Small Business Impact Assessment would consider how changes to regulations and legislation would impact:
- Small businesses’ ability to seek financial assistance
- Conditions for investments in and by small businesses
- Small businesses’ ability to participate in a competitive marketplace
- The long-term viability and sustainability of small businesses.”