by Morinville News Staff
The Canadian Federation of Independent Business (CFIB) are citing skyrocketing labour costs are leaving young workers in the lurch, and are calling on the federal government to provide small businesses with tax fairness, innovation and training support in the 2018 federal budget to address it.
The business organization says fairer tax measures and incentives for innovation and youth hiring are at the top priorities for the upcoming federal budget among the country’s business owners, according to a member survey.
“With tax season rapidly approaching, Canadian small business owners are telling us that the government’s proposed tax changes are still top of mind. There is not enough clarity on the new income-sprinkling rules, and we remain concerned that the proposed passive rules will hurt owners’ ability to save and reinvest in their business,” said CFIB President Dan Kelly. “We’re urging the government to listen to the Senate’s recommendations and put off implementing any tax changes until they fully analyze the impacts of these changes on the economy.”
As the United States introduces business-friendly tax reforms, CFIB says it is critical that Canada support its small businesses to keep them competitive.
The organization is calling on the Trudeau government to help spur innovation and productivity in the small business sector by introducing an expense deduction for investments in new technology or equipment. The Americans have a $1,000,000 deduction already available to small firms.
“One of the major barriers to small business innovation is cost,” Kelly said. “Providing some tax relief against purchases of new technologies will help small businesses hire more people, pay higher wages and be even more productive contributors to Canada’s economic growth.”
CFIB is also hoping to lobby government to address an increase in CPP for the next seven years and minimum wage increases across the country.
“With so many payroll costs going up, youth hiring plans are the first thing on the chopping block,” said Corinne Pohlmann, CFIB’s senior vice-president, national affairs. “We’re looking to government to help offset those costs and reinstate their promise to provide an ‘EI holiday’ for youth workers to help small businesses continue to hire more young Canadians.”
The business organization is planning to meet with government officials as well as key critics and MPs from the opposition parties to present small business’ recommendations for the budget.