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Apr
27

Budget Big Win for Small business, Manufacturers

Tags: | Posted by business@nfld.net | 0 Comments

The federal budget contained big wins for Canada’s small business owners, manufacturers and auto parts suppliers. The Ring of Fire, however, didn’t get the boost some had hoped for:

 

Small business

The sector won a massive and long, sought-after tax cut, with its rate dropping to 9 per cent from the current 11 per cent over four years. The measure, which comes into effect in 2016/17, will cost Ottawa $2.7 billion in lost revenue.

 

Critics fear the reduction will encourage more rich people to set up corporations to avoid paying tax. Advocates say it will encourage small business owners to invest and expand.

 

“It is perhaps the most decidedly pro small business budget we’ve seen,” said a delighted Dan Kelly, president and chief executive officer of the Canadian Federation of Independent Business.

 

Manufacturers

They won a 10-year tax incentive to boost investment in machinery and equipment, a measure that should help them drive Canada’s economic growth now that the energy industry has been hit by plunging oil prices.

 

To read the remainder of this article, please visit:  http://www.thestar.com/business/economy/2015/04/21/budget-big-win-for-small-business-manufacturers.html

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