Small businesses are not looking forward to 2019.
The Canadian Federation of Independent Business says small business is in desperate need of a break, but what they are getting is a bunch of new taxes including Canada Pension Plan increases along with new passive investment rules and the carbon tax.
Prairie spokesperson Marilyn Braun-Pollon says the carbon tax is a big problem because small businesses will not get rebates or exemptions.
“92 percent of businesses surveyed say they can’t afford the carbon tax as they can only pass on a quarter of the cost.” Braun-Pollon stated.” We find that to be very unfair. We’re in an affordability crisis.”
The CFIB also wants to remind you of the following tax changes:
- CPP Premiums will rise for five years for all Canadians starting January 1, 2019 and seven years for those earning over $56,000. This will reduce an employee’s take home pay by up to $1,050 per year when fully phased in, and reduce the payroll budget of every employer.
- Federal carbon taxes will begin to hit taxpayers in Saskatchewan, Manitoba, Ontario and New Brunswick starting in the spring of 2019, rising each year for an additional three years.
- On top of higher taxes in 2018 for many family businesses due to new income sprinkling rules, small businesses with passive investment income above $50,000 per year will pay significantly higher corporate taxes starting in 2019.