by Morinville News Staff
New survey results from the Canadian Federation of Independent Business (CFIB) indicate small business owners remain concerned about the government’s proposed tax changes with almost two-thirds of respondents saying changes have caused them to rethink whether to continue being in business.
Despite a decision to allow up to $50,000 in passive investment income per year and reduce the small business rate to 9 per cent, the CFIB say the proposed changes to passive investment rules continue to be a major worry. Eighty-six per cent of business respondents with passive investments say the proposed changes would have a negative impact on their business. ninety-four per cent noted the new rules made it more difficult to save money in case of a downturn or to even grow the business.
“Small businesses are at the very heart of our economy and the federal government’s role should be to promote an environment which is conducive to their growth and competitiveness,” said CFIB President Dan Kelly.
The CFIB survey data indicates that 71% of business owners used passive investments to save for their retirement, 65% used it to keep their business afloat during difficult economic times, and 53% used it to help grow their business. Forty-sx per cent said they use it to buy new equipment or technology.
“Small business owners have been clear regarding their concerns, and 94% urge the government to abandon the proposed changes to passive investment rules,” Kelly said, noting he hoped businesses would not be let down when the federal budget is released Tuesday.
CFIB data was based on responses from 3,697 Canadian business owners.