Discussion is part of national listening tour on tax fairness
TORONTO, Sept. 10, 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 Etobicoke today to discuss tax fairness with members of the Indo-Canada Chamber of Commerce.
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 roundtables across the country with the objective of building a fairer tax system for middle-class Canadians.
Quotes
"I was glad to meet with members of the Indo-Canada Chamber of Commerce on our government's proposed changes to make our tax system fairer for all Canadians. It was a great opportunity for me to have an honest conversation on tax fairness with small business owners, clarify the Government's objectives in introducing these proposed changes and dispel the myths about our proposals. We want to ensure fairness, while protecting small businesses' ability to incorporate, make investments, save for downturns and pay family members who work in the business. We want to make sure we get it right. Over the coming weeks, we will continue to listen to Canadians, including small business owners, professionals and experts, on how to achieve tax fairness, while avoiding unintended consequences."
- Bardish Chagger, Leader of the Government in the House of Commons and Minister of Small Business and Tourism
Quick Facts
- 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 unfairness 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 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 has reached a total of over $29 billion committed to small and medium-sized businesses as of August 2017.
Associated Links
- Ministers Morneau and Chagger Kick Off National Listening Tour With Small Business Owners
- Minister Morneau Brings Message of Tax Fairness to Toronto Region Board of Trade
Follow Minister Chagger on social media.
Twitter: @MinofSBT
Instagram: minofsbt
SOURCE Innovation, Science and Economic Development Canada
Contacts: 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 protected]
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