2016 Federal Budget: 3/22/2016

The Liberal Governments first federal budget was released this afternoon.  In the Canadian Chamber's report on the budget they give Taxes a D- noting that this is "A hit to small business" 

The budget defers the decrease in the Small Business Tax rate which was expected to fall by 0.5% a year going from 11% to 9% in 2019.  The rate is currently at 10.5% and the remaining decreases have been indefinitely deferred.  This will result in small businesses across the country paying over $1 billion more than expected. Investment income will not be eligible for the small business rate.

Consultation with Canadians on the Canada Pension Plan will take place, this could result in an increase in payroll taxes.  

One small win for business is the Employment Insurance premium rate will see a small decrease from the current 1.88 to 1.61.

Read the full Report Card on the Budget prepared by the Canadian Chamber of Commerce

Read the 2016 Federal Budget "Growing the Middle Class"  

Canadian Chamber Press Release on the Federal Budget - "A Budget Spread Too Thin"

Read the BC Chambers response to the Federal Budget