With the 2019 Federal election right around the corner, many campaign promises have been made across the political spectrum. This serves as a non-partisan overview of the key promises that will have an impact on small and medium sized businesses and their owners. This overview looks at the three leading political parties including the Conservatives, Liberals and NDP.
Conservative Party of Canada
- Repeal the recent tax increases on small business investments, restoring access to the small business tax rate for corporations earning more than $50,000 in passive investment income in a given year.
- Exempt spouses from the tax on split income.
- Make changes to the Canada Revenue Agency to make it easier to navigate the tax system, reduce the complexity in CRA rules and appoint a panel to review taxation.
- Reduce small business federal regulations by 25 percent and implement a 2-for-1 rule for any new regulations (for any new regulation added, two previous ones must be removed).
- Review all federal business subsidies and eliminate $1.5 billion worth of subsidies.
- Lower tax rates from 15 percent to 5 percent for green technology companies.
More information about the Conservative platform for small businesses can be found here.
Liberal Party of Canada
- Cut the small business tax rate to nine percent (implemented in the 2019 Federal Budget).
- Create the Canada Entrepreneur Account which would provide up to 2000 entrepreneurs every year with up to $50,000 to start a new business.
- End swipe fees on GST and HST that merchants pay to credit card firms every time one is used.
- Eliminate fees from Business Development Bank of Canada, Export Development Canada and Farm Credit Canada for business advisory services.
- Give $250 to every business looking to expand their online services and cut the cost of federal incorporation by 75 percent.
- Cut corporate taxes in half for businesses making zero-emission products or technology.
More information about the Liberal platform for small businesses can be found here.
New Democratic Party
- Implement a cap on fees that small businesses pay to credit card companies.
- Keep the small business tax rate at 9 percent and change rules for family transfers to avoid “unfair tax treatment.”
- Increase the general corporate income tax rate from 15 to 18 percent.
- Increase the capital gains inclusion rate from 50 to 75 percent.
- Increase the top federal personal income tax rate from 33 to 35 percent.
- Impose a one percent wealth tax on wealth of more than $20 million.
More information about the NDP platform for small businesses can be found here.
