Ministers Morneau and Chagger Kick Off National Listening Tour With Small Business Owners
September 5, 2017 – Vancouver, British Columbia – Department of Finance Canada
Small businesses are important job creators for middle class Canadians. And the Government of Canada is committed to supporting them and all business owners and professionals to help them grow, invest and create good, well-paying jobs.
Finance Minister Bill Morneau and Member of Parliament for Vancouver Centre Hedy Fry were in Vancouver today to meet with small business owners and kick off a cross-Canada listening tour in support of the Government's ongoing consultations on tax fairness proposals involving Canadian-controlled private corporations. Bardish Chagger, Minister of Small Business and Tourism, will also be meeting with business owners and professionals over the coming days and weeks.
These meetings are intended to hear from small business owners from across the country on ways to build a fairer tax system for middle class Canadians, while helping Canadian businesses create middle class jobs, invest in their communities and grow. Canada has one of the lowest corporate tax rates, and the lowest small business tax rate, in the G7. These rates are designed to help Canadian businesses create middle class jobs, invest in their community and grow. We want to make sure they are being used fairly.
"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."
- 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 close these unfair loopholes, 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.
Small businesses in Canada benefit from support that includes a reduced federal income tax rate of 10.5 per cent on their first $500,000 of active business income.
The combined federal-provincial-territorial average tax rate for small business is 14.4 per cent, 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 has reached a total of over $29 billion committed to small and medium-sized businesses as of August 2017.
Director of Communications
Office of the Minister of Finance
Department of Finance Canada
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