Monday: Government Promises Small Business Tax Cut

Monday: Government Promises Small Business Tax Cut

UPDATED October 16, 2017 3:52pmET

Small businesses will see a tax reduction from 11 to 10 per cent in 2018 — with a further reduction to 9 per cent in 2019 — for the first $500,000 of income, the government announced earlier today.

Ottawa claims this will lower the combined federal-provincial small business rate from 14.4 to 12.9 per cent.

The reduction had been promised in the 2015 Liberal election platform.

Finance Canada also announced  more details to come this week on better targeting “strategies used by the relatively small number of high-income individuals who get the biggest advantage from existing tax rules.” According to the government:

The vast majority of private corporations will not be impacted by the proposed income sprinkling measures. Corporations with family members who meaningfully contribute to the business will not be impacted by the proposed measures on income sprinkling. In addition, the Government today announced it will not be moving forward with proposed measures to limit access to the Lifetime Capital Gains Exemption.

Meanwhile, the House of Commons returns from a one-week break with more debate on Bill C-55, the government’s ocean protection legislation.

A motion from Conservative MP Martin Shields is also on the order paper:

That, in the opinion of the House, the government should recognize that the ongoing contribution of ranchers and farmers as stewards of the land and conservationists is part of our history, proudly shared by all Canadians, and should consider establishing policies which would support and encourage the development of private farm and ranch land conservation and restoration projects.

And NAFTA talks continue between Canadian, American, and Mexican negotiators near Washington, D.C.

In committee:

  • The Commons heritage committee holds another hearing on Motion M-103.

-Andrew Thomson

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