A new analysis by the Parliamentary Budget Office (PBO) confirms that the Liberal government’s decision to cancel the planned reduction to the small business tax rate will shrink economic growth and kill jobs.
It was the previous Conservative government that lowered the small business tax rate from 12% to 11%, with further plans to reduce it to 9%.
AND during last year’s election campaign, the Liberals promised to follow-through with our plan.
However, small business owners and entrepreneurs were shocked when the Liberals abandoned this promise in their 2016 budget.
The budget also cancelled the Hiring Credit for Small Business.
The PBO’s analysis confirms that failing to follow-through on reducing the small business tax rate will reduce Canada’s real GDP by $300 million, and will cost small business $2.15 billion over five years.
On top of this, the Liberals now want to introduce a CPP tax hike that will further hurt small businesses and working Canadians.
Small businesses are the heart of the Westman's economy.
I will continue to urge the Liberals to stop raising taxes on small businesses in Canada.