A plan to cut the small business tax rate from 10.5% to 9% was announced in Ottawa on Monday.
The tax cut will be phased in over the next two years, dropping to 10% on January 1st, 2018 and down to 9% on January 1st, 2019.
We said we'd cut taxes on small business, and we're doing exactly that. When the tax system is fair, all Canadians see the benefits. pic.twitter.com/Cukgn6XmCP
— Bill Morneau (@Bill_Morneau) October 16, 2017
“We said we'd cut taxes on small business, and we're doing exactly that,” said Minister of Finance, Bill Morneau. “When the tax system is fair, all Canadians see the benefits.”
“By cutting the small business tax rate to 9%, Canada maintains the lowest rate in the G7, by far, and will be the 4th lowest in the(Organization for Economic Co-operation and Development),” Morneau added.
This move was promised by Trudeau during his campaign in 2015, but went back on that in his 2016 budget by saying the rate would be frozen at 10.5%.
With plenty of vocal opposition to that move, Trudeau and his Liberal government are reviving the promise of 9%.
Trudeau explained the delay on Monday.
“When we made the commitment back in 2015 to lower small business taxes, we were very clear about one thing: we would only make this change after we took a look at the tax system,” Trudeau said. “That’s what our consultations of these past months were all about.”
The prime minister stressed the importance of small businesses being able to continue investing in their business, but maintained the desire to restrict income sprinkling.
