Small businesses are welcoming the Federal Government’s plans to go ahead with a campaign promise that will reduce their taxes down to nine percent in 2019, and from 10.5 percent to 10 percent this January.
However many owners are waiting to see details on two more announcements the Liberals have planned for this week before they celebrate too much.
Marilyn Braun-Pollon, the CFIB’s Vice President said they as well are pleased to hear of the tax break, but are cautiously optimistic with two more announcements on the way this week.
“We are anxiously waiting for details on the other components of the proposed tax changes, the details on passive income rules and the treatment of capital gains related to business succession, and we’ll wait for the complete details and analysis before we pass any judgement,” Braun-Pollon said on Monday.
The Liberals are expected to announce changes to passive income and capital gains investment sometime this week.
The CEO of Regina’s Chamber of Commerce, John Hopkins feels the same way, saying many business will now have the opportunity to do things like hire more employees.
However Hopkins said judgement will be passed later this week when all the details have been released.
“There’s still passive income, what’s going to happen with that, will businesses be able to retain income within the business for rainy day funds, for acquisitions and for new business ventures, whatever the aspirations may be. Also we still don’t know the technical details which are really needed for the tax professionals to examine this,” Hopkins said.
The changes were announced Monday after a special caucus meeting after weeks of angry open houses held across the country when Justin Trudeau announced he would be freezing small business tax at 10.5 percent.