Discussion is part of national listening tour on tax fairness
LONDON, ON, Sept. 15, 2017 /CNW/ - Currently, someone earning $300,000 can use a private corporation to get tax savings that amount to roughly what the average Canadian earns in a year. This tax planning strategy is legal, but that doesn't make it fair. The Government of Canada has already taken measures to make our system fairer, including raising taxes on the wealthiest 1 percent and lowering them for the middle class.
The Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism, was in London, Ontario, today to discuss tax fairness with small business stakeholders in the region.
Small businesses are the backbone of our economy, and the Government of Canada is committed to supporting all business owners and professionals to help them grow, invest and create good, well-paying jobs. Two thirds of businesses in Canada earn less than $73,000 a year, and these hard-working middle-class small business owners are not our focus. The proposed changes will protect and maintain small businesses' ability to succeed and create jobs, while ensuring that the wealthiest pay their fair share.
Over the coming weeks, the Government will continue to host similar round tables across the country, with the objective of building a fairer tax system for middle-class Canadians.
"Over the coming weeks, I look forward to engaging with Canadians, including small business owners, professionals and experts, on how to achieve tax fairness. There are a number of myths about our government's proposals that need to be dispelled. For example, reasonable dividends paid to family members will not be affected. And our proposal on passive investment income will only take effect going forward and will still protect an owner's ability to invest in their business and save for downturns. We are committed to making Canada's tax system fairer for all Canadians. And we want to make sure we get it right."
– The Honourable Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism
"I know first-hand that running a business is hard work. It involves taking risks, suffering setbacks, and often a great deal of sacrifice. I am committed to ensuring that this hard work is rewarded and that Canada's tax system continues to help businesses small and large to expand and create jobs. Meetings like the ones today are an important part of the dialogue as we consult on ways to ensure a competitive and fairer tax system for all Canadians."
– The Honourable Bill Morneau, Minister of Finance
- An increasing number of Canadians—often high-income individuals—are using private corporations in ways that allow them to reduce their personal taxes. The Government of Canada is consulting Canadians on proposals to address these unfair advantages while maintaining Canada's low and competitive business tax rates.
- Canada has a combined general corporate tax rate that is 12 percentage points lower than our largest trading partner, the United States, and a combined small business corporate income tax rate that is the lowest in the G7.
- The combined federal-provincial-territorial average tax rate for small business is the lowest in the G7 and fourth lowest among Organisation for Economic Co-operation and Development countries. Small businesses can retain more of their earnings to reinvest, supporting growth and job creation.
- In addition to generous tax support, small businesses also benefit from direct program support for scaling up, including access to financing and foreign markets, support for innovation, and services to build entrepreneurial and management capacity through programs such as the Industrial Research Assistance Program and the Canada Small Business Financing Program. A number of federal entities provide support for small and medium-sized enterprises, including Innovation, Science and Economic Development Canada; Global Affairs Canada; Export Development Canada; and the regional development agencies. Most notably, the Business Development Bank of Canada serves 49,000 Canadian small and medium-sized enterprises and had committed more than $29 billion to small and medium-sized businesses as of August 2017.
Follow Minister Chagger on social media.
SOURCE Innovation, Science and Economic Development Canada
For further information: Jonathan Dignan, Director of Communications, Office of the Minister of Small Business and Tourism, 343-291-2700; Media Relations, Innovation, Science and Economic Development Canada, 343-291-1777, email@example.com