Money: What small business owners want to see in the next federal budget - PressFrom - Canada
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MoneyWhat small business owners want to see in the next federal budget

07:15  15 march  2019
07:15  15 march  2019 Source:   financialpost.com

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The United States federal budget comprises the spending and revenues of the U.S. federal government. The budget is the financial representation of the priorities of the government

The federal budget will be released on March 19 Throughout the government’s consultations, we have been submitting your priorities and meeting with MPs and their staff to make sure your priorities are addressed in the budget – as well as in the next federal election, slated to happen later this year!

What small business owners want to see in the next federal budget© Provided by PostMedia Digital Paul McAleese,Bill Morneau

For nearly the entire 48 year history of the Canadian Federation of Independent Business, small business owners have ranked lowering the total tax burden as their No. 1 priority. Many owners of small firms report their success, expansion, innovation and opportunity for job creation are restrained by the new and existing forms of taxes that many governments are introducing or raising.

This year, while there has been progress made in getting the promised (and then cancelled) federal small business corporate rate lowered to nine per cent, and seeing accelerated depreciation of many capital investments, the tax picture is decidedly negative. We need to remember that every Canadian’s take home pay dropped on January 1, 2019 due to a hike in Canada Pension Plan (CPP) premiums. Every Canadian employer saw his or her payroll budget shrink for the same reason. And this will happen again each January 1 for the next four to six years as a result of CPP expansion.

Budget not an election document, Morneau says

Budget not an election document, Morneau says HALIFAX - Finance Minister Bill Morneau told a Halifax business audience today that they shouldn't think of this week's federal budget as an election document. In remarks to the Halifax Chamber of Commerce, Morneau said that if there was anything the government did in the budget that was a surprise then "you haven't been watching us for the last four years." Morneau also continued to make the case for more spending, saying now is "exactly the wrong time" to balance the budget quickly. © Provided by thecanadianpress.com Finance Minister Bill Morneau delivers a speech at the Economic Club of Canada in Ottawa on Wednesday, March 20, 2019.

The federal budget is the government estimate of spending and revenue for each fiscal year. It also includes sin taxes on activities the government wants to discourage, such as cigarette A budget surplus heads off a dangerous bubble when the economy is in the boom phase of the business cycle.

If you're a small - business owner , the budget makes two changes that could affect you: (1) reduced access to the small - business tax rate, and (2) limited access to refundable taxes. Instead, they reduce the amount of active business income that can enjoy the small - business tax rate in the future.

In Saskatchewan, Manitoba, Ontario and New Brunswick, carbon taxes will be introduced and raised each year for a four-year period. This is particularly worrisome and unfair for small firms as new CFIB research shows that nearly 50 per cent of the billions in federal carbon taxes will come directly from SMEs (while they get only seven per cent of the total rebates). Meanwhile, consumers are told they will get rebates larger than the amount they actually pay in carbon taxes and large emitters will get exemptions on much of their carbon creation.

Your Money: Pay yourself first? Last is how small biz often works

Your Money: Pay yourself first? Last is how small biz often works Everyone knows the Golden Rule of business is to pay yourself first. But more than half of small business owners are going months without pay - if they are taking any at all. About a quarter of these entrepreneurs go two to six months without pay, and another quarter have gone more than six months without salary, according to a recent survey from Kabbage, a cash flow optimization platform. The small business payroll servicer Gusto (http://gusto.com) finds even more ups and down for its clients.

Recent research suggests that small business would perhaps prefer this to be the case, with an MYOB survey revealing that almost half of Want to be part of a different Federal Budget conversation this year? Join our Facebook event to make sure you’re in the know about the things that will impact you.

“ Small business owners are out there fighting for growth in their businesses every day. They deserve our respect and support.” Scott Morrison, Treasurer, Tuesday 9 May 2017. Let’s take a look at the tax changes announced in the Federal Budget that will affect your small business and your accounting

On top of all this, many SMEs will be hit with new taxes on passive investment income in 2019 – part of the harmful small business tax reform package that was rushed in after summer of 2017. This is despite repeated promises that past passive investment income will not be hit by retroactive taxes.

So you can understand why small firms are a bit apprehensive around government budget season, particularly at a time when governments are running massive deficits. Small business owners know that today’s deficits are tomorrow’s taxes.

And given that 2019 is a federal election year, one can expect a variety of pricey new spending program ideas, such as a national pharmacare program, that will need to find a dedicated source of revenue.

CFIB has been busy advocating with both the federal government and opposition parties on small business priorities in advance of the March 19 budget.

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Morneau pushes back at business concerns that budget overlooked competitiveness worries “I don’t agree with them at all," said Finance Minister Bill Morneau when asked about business group concerns the budget didn't address competitiveness.

Start your business Business plan Buying an existing business ? Business structure Business name Get registered Business location Federal tax number Licenses and permits If you are buying a business or even just some of the assets of a business , be aware that you

If you are a parent, tax-payer, small business owner , looking to buy a house or on a visa, here’s the low down on what the Budget has in store for you.

A permanent lower EI rate for small business (perhaps on the first $500,000 in payroll) would alleviate some of the CPP payroll tax pressure and allow business owners to invest more in expanding their business, or hiring and training staff. We also want to see government make good on its election promise to introduce an EI holiday for hiring youth. Helping small business owners hire and train young workers by offsetting some of the cost would go a long way to addressing the growing shortage of labour and the 409,000 private sector jobs that went unfilled last quarter.

Nearly three quarters of owners intend to exit their enterprises in the next decade. The vast majority are relying on the sale of their business to fund their retirement, and many would prefer to sell or transfer their operation to a family member. However, under the current rules, business owners are taxed far more heavily when they sell to family than when they sell to a third party. CFIB is urging the government to change the rules so that sales to family members and to third parties are taxed in the same way. Both Liberal MP Emmanuel Dubourg and NDP MP Guy Caron have drafted legislation that could be adopted to make this happen.

Morneau drops more hints about budget

Morneau drops more hints about budget OTTAWA - Finance Minister Bill Morneau is suggesting that next week's federal budget will include measures to help Canadians cover their bills if they choose to head back to school to boost their skills or change careers. During a morning event in Toronto, Morneau told a group of children that the Liberal government is looking at ways to help people prepare for their next jobs. Among the ideas Morneau is putting out today are an avenue for people to have dedicated time off for skills training and ways to cover their expenses while they're out of the workforce.

The new federal budget takes the government's ongoing focus on jobs, growth and long-term prosperity to a new level, emphasizing Those businesses will want to explore how a proposed -million to support research partnerships with industry may open up new doors over the next two years.

Small businesses want to do the right thing, “but they often feel swamped by the demands put on them by various compliance burdens”. This budget proposal is a great first step to helping small businesses overcome the hurdles to growth. Now, let’s take a look at what’s important to small

CFIB also calls on government to rethink its new passive investment rules and, at minimum, protect past passive investment streams as it promised to do. Providing a full exemption for spouses from the new income sprinkling rules would also help firms reduce their red tape and ensure the many informal roles of family members are respected and valued.

In addition to announcing new measures to lower the red tape burden facing entrepreneurs, the government should announce a long-term strategy to get top personal income rates below 50 per cent. The long-term consequences of sending more than half of one’s earnings to government can be debilitating on the nation’s work-ethic and entrepreneurial spirit.

And while there are many worthwhile ideas for public spending, small business owners want government to provide us with a pathway back to a balanced budget. Not only is this important to keep future taxes in check, it is critical to ensure we have the capacity to address an economic slowdown or recession.

While some progress has been made on certain important files, I continue to hear from small business owners across Canada who feel alienated and misunderstood by their government. They were made to feel like tax cheats and one-percenters in 2017 when the government introduced its unfair tax changes for small business.

Small business owners will be looking to the 2019 budget a sign of whether the concerns of entrepreneurs are a priority or an afterthought. They’ll also be looking to all parties to see how strongly they are featured in their platforms as we approach the October election. I’m sure hoping they won’t be disappointed!

Dan Kelly is chief executive officer of the Canadian Federation of Independent Business.

Budget 2019 will create 'lifelong learning' accounts: sources.
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