TORONTO, Feb. 11, 2014 /CNW/ - Canada's small business owners welcomed several measures from today's federal budget, particularly efforts to eliminate the deficit, reduce credit card processing fees for merchants and consumers and cut the cost of the public service. "Small business owners know that today's deficits are tomorrow's taxes, so they are pleased the government's commitment to a balanced budget in 2015 remains solid," said CFIB president Dan Kelly.
There were several small business-friendly changes in the 2014 budget, including:
- Committing to help in reducing credit card processing fees for merchants and improving the Code of Conduct;
- Confirming freezes in both Employment Insurance and Canada Pension Plan rates;
- Accepting CFIB's recommendations to cut red tape by allowing more small firms to remit source deductions less frequently;
- New approaches to workplace training, loans for apprentices and internships in small business; and
- Further actions to restrain public sector compensation, reform sick leave provisions and reduce the cost to taxpayers of government retiree benefits.
"We are very pleased that the budget states further steps will be taken to reduce credit card processing fees for merchants and the dearth of information for consumers," Kelly said. "CFIB has been working hard to push for measures to reduce the $5-7 billion cost of credit card processing and to end the 'arms race' of ever-higher tiers of high-cost premium cards."
Small Business Taxes
"As many small business owners who pay themselves in dividends will be hit hard in 2014 by last year's changes to the dividend tax credit, CFIB is relieved the government is promising further tax reductions for small business once the budget is in balance," Kelly noted.
Hiring Credit Eliminated
"While small firms recognize the government froze Employment Insurance premiums for 2014, CFIB is also disappointed with the elimination of the Hiring Credit for small business," Kelly said. "We urge government to move quickly to reduce EI premiums as soon as the account is back in balance," Kelly added.
Cross Border Pricing
"While there were few big surprises in the 2014 budget, CFIB is pleased that government remains on course to eliminate the deficit next year," Kelly said. "With a soft economy, we will be lobbying hard for tax reductions, such as a cut in the small business corporate tax rate, in advance of the 2015 budget. We will also continue to monitor new proposals, like legislation on cross-border pricing, to ensure the interests of independent businesses are protected."
CFIB is Canada's largest association of small and medium-sized businesses with 109,000 members across every sector and region.
SOURCE: Canadian Federation of Independent Business
For further information:
To arrange an interview with Dan Kelly, please contact Gisele Lumsden at 647-808-5769 or [email protected].