Will lower small business tax rate by 8.7 per cent
Doug Ford today announced the latest Ontario PC measure that will help small business owners create good jobs.
“If you’ve spent time in almost any town in Ontario — you know that small businesses are the lifeblood of their communities,” said Ford. “But small business owners can’t afford to hire expensive lobbyists and they are too busy working to go to fancy receptions and network with Liberal insiders. So, it’s no surprise that Kathleen Wynne has forgotten that small businesses even exist.”
Ford highlighted how, under Kathleen Wynne and the Liberals, small business hydro bills have tripled while many small businesses are struggling to stay open under the increased burden of red tape and regulations. The Canadian Federation of Independent Business recently reported that more than one-third of Ontario small businesses are thinking about shutting their doors or relocating.
“If Kathleen Wynne is ignoring small businesses, then the NDP are allergic to them,” said Ford. “We’ve seen the consequence of an NDP government before…it will include thousands of small businesses shutting their doors and hundreds of thousands of people out of work.”
Ford announced that an Ontario PC Government will take action to help small businesses in Ontario. In particular, an Ontario PC government will ensure that small business workers who make minimum wage will pay no provincial income tax. In addition, an Ontario PC Government will reduce small business hydro bills by 12 per cent. Finally, Ford announced that an Ontario PC Government will reduce the small business tax rate by 8.7 per cent.
“This is money taken out of the pockets of the government, and put into the pockets of the mom-and-pop stores, the innovative start-ups and the family businesses,” said Ford. “Our plan is responsible and affordable. My message to small business owners and small business workers is this, on June 7 change is coming and help is on the way.”
Backgrounder – Small Business Tax Cut
- Small businesses represent 95 per cent of all employers in Ontario. However, Ontario’s small businesses are struggling because of the increased cost of doing business in the province.
- The Liberals have turned Ontario into a high-cost jurisdiction for businesses: Ontario has some of the highest hydro rates on the continent, recently introduced a rapid increase to the minimum wage, implemented a business-hurting cap-and-trade scam, and continues to increase red tape and regulatory hurdles.
- The Canadian Federation of Independent Business showed that the cumulative burden of the Liberal Government’s policies is that “34 per cent of Ontario’s small and medium-sized businesses would consider selling, closing or moving their business outside of Ontario.”
- The government should do more to help small businesses, rather than continually add to the burden. Liberal policies have made it difficult for small businesses with limited revenues and tight margins to remain competitive.
- The CEO of Ontario Restaurant Hotel and Motel Association noted that “The consensus from the small-business community is that these last few years there have been policies that are hurting businesses significantly” and there haven’t been any real offsets to support prosperity for business.
- The Liberals have made clear they are unconcerned about damaging the province’s competitiveness.
How We Will Fix It:
- A Doug Ford Ontario PC Government will help small businesses by reducing the small business tax rate by 8.7 per cent. This is the same percentage by which the Ontario PCs will reduce the corporate tax rate.
- This tax cut will apply to the first $500,000 of profits, and will cost the government just over $60 million annually once implemented. We will include this measure in our first budget.
- This means, under an Ontario PC Government, the small business tax rate will be reduced to 3.2 per cent from the current 3.5 per cent.
- This tax cut is in addition to the 12 per cent hydro rate reduction, which applies to small businesses, the 10 cents per litre provincial fuel tax reduction, the scrapping of the cap and trade carbon tax, reducing labour costs by implementing a minimum wage tax credit for workers, and reducing red tape.
- Doug Ford and the Ontario PCs understand that small businesses are job creators and the backbone of the economy. The province should do more to help small businesses instead of continually adding to the burden.
- Small businesses need relief. Help is on the way.