Unleashing the small business sector
On the heels of his gutsy GST scheme, Stephen Harper announced today a proposal which would see a 33% increase in the tax bracket threshold for small businesses.
Currently, the small business tax rate is 12% for those with income below $300,000 and 21% for those with income above it. Under Harper's plan, the 12% rate would be extended to income below $400,000 with the rate to fall to 11% over the next five years.
This is some good stuff. As mentioned in the story I linked to above, the Canadian Federation of Independent Business, one of the foremost lobby groups for small business in Canada, says that this is their number one suggestion to increase prosperity for their membership. Since those small businesses are responsible for almost two-thirds of the jobs in Canada, I think this is a great move which, if implemented, would increase employment and income for Canadians from coast to coast.
I am looking forward to seeing what Harper will suggest with regards to personal income taxes. I am also looking forward to seeing how the Liberals will respond to all of this.
posted by Road Hammer @ 1:44 PM
1 comments
1 Comments:
Some will probably pocket it, which is their right because they took the risk to open the business in the first place.
Others, though, will see that it has become more profitable to expand operations because the government is not penalizing them to do so at a higher rate any longer.
There is more of an incentive to grow your business if your earnings are not going to be confiscated.
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