The Canadian Federation of Independent Business (CFIB) is asking for MPs to help small businesses by reducing costs and regulations. CPP rates are scheduled to go up every year for the next five years which will significantly raise payroll costs for employers.
“In fact, even with the welcome news of a small drop in Employment Insurance rates for 2019, employee paycheques and employer payroll budgets will be smaller on January 1,” Dan Kelly, CFIB president noted. On top of this, the tax changes introduced in 2017 have also been expensive for many small businesses, increasing both their tax and regulatory burdens.
“Though the government moved forward with its small business tax changes, there are still things that can be done to soften the blow on small business owners,” said Kelly. “Exempting spouses from the new income sprinkling rules and grandfathering existing investments from the new passive investment rules would go a long way towards improving business optimism.”
Helping businesses remain competitive
In a letter sent to all MPs, CFIB is urging the government to introduce measures to offset the mounting costs and regulatory burden for small businesses, such as:
· Allowing small businesses to deduct costs on new equipment or technology
· Instituting a permanent lower EI rate for small businesses and an EI holiday for hiring youth
“We’re looking forward to this new session and to working with all parties to strengthen Canada’s business environment,” added Corinne Pohlmann, CFIB senior vice-president of national affairs. “This is their opportunity to take concrete actions to show small business owners they care in the lead-up to the 2019 election.”
To provide further details, Dan Kelly will be presenting CFIB’s pre-budget recommendations to the House of Commons Standing Committee on Finance tomorrow at 8:45AM (EST).