CFIB wants tax measures brought in to aid small businessesBy The IJ Staff | February 05 2020 01:00PM
The Canadian Federation of Independent Business (CFIB) is urging all political parties to put forward policies that make it more affordable to own, operate and pass on a small business, including fair tax treatment of family succession, lowering payroll taxes and reducing red tape.
"During the election, all the parties talked about making life more affordable for Canadians, and this theme needs to include small business owners,” said CFIB president Dan Kelly. “This year's budget is an opportunity for all sides to work together to create an environment where entrepreneurs feel confident starting and growing their business.”
Better tax policies needed for business owners who want to sell to their children
CFIB research indicates that 72 per cent of business owners plan on exiting their business within the next decade, which represents a transfer of assets potentially worth over $1.5 trillion. Many of these business owners want to sell their business to their children.
"The exclusion of family members from the Lifetime Capital Gains Exemption is the top tax issue small business owners want to see addressed,” said Kelly. "We think that making it easier for small business owners to sell to their kids is something that all the parties can get behind —and it would be a big win for entrepreneurs."
Eliminate some credit card processing fees
A big election commitment by the Liberals was to eliminate credit card processing fees on GST and HST. CFIB estimates this could save merchants up to $500 million a year and would be welcome news on top of the Visa and Mastercard fee reductions planned later in the spring, he said.
Other issues small business owners would like to see resolved include:
- Pause planned CPP premium hikes and implement an EI credit which effectively lowers the rate for small businesses
- Allocate an equal share of carbon tax revenues between households and businesses to better reflect the share of carbon taxes being paid by each
- Put in place a plan to return to balanced budgets within the next five years
- Reduce red tape by improving government customer service, including through utilizing digital technologies
- Ensure that the Canada Training Benefit meets the needs of both employees and employers.