Party Platforms for Small Business

LIBERAL PARTY OF CANADA

Media Release September 13, 2019

Liberals to make it easier to start and grow a business, moving Canada’s economy forward

Trois-Rivières, QC — A re-elected Liberal government will make it easier and more affordable for hard-working Canadians to start and grow their own businesses.

Right now, seven out of every ten Canadians work for small and medium-sized businesses — making them Canada’s largest employers and drivers of our economy. Yet for too many entrepreneurs, the costs of doing business is a barrier.

“After a decade of stalled economic growth and unemployment under the Conservatives, Canada’s economy has rebounded — largely thanks to the hard work of Canadians who started their own businesses,” said Leader of the Liberal Party of Canada, Justin Trudeau. “To keep that momentum moving forward, we cut the small business tax rate and now we’re making it possible for anyone with a good idea and a passion for what they do to start their own business and support their communities.”

In addition to cutting the small business tax rate from 11 per cent to 9 per cent, a re-elected Liberal government will remove barriers to success by cutting fees, reducing red tape, and creating funds for new business owners to find support. We will also:

provide up to 2,000 entrepreneurs a year with as much as $50,000 to launch a new business;
give $250 to every new business looking to expand their online services;
eliminate all fees from the Business Development Bank of Canada (BDC), Export Development Canada (EDC), and Farm Credit Canada, for business advisory services like mentorship and training;
cut the cost of federal incorporation by 75 per cent; and
eliminate the “swipe fee” on HST and GST for credit transactions — which will save businesses nearly $500 million a year in fees.

These measures build on four years of strong Liberal support for small- and medium-sized businesses in Canada, including:

cutting the small business tax rate to nine per cent — the lowest rate in the G7 — which saves businesses as much as $7,500 per year;
allowing businesses to write-off job creating investments;
making regulations smarter and eliminating unnecessary and outdated regulations; and
opening up new markets for businesses by introducing the Export Diversification Strategy.

“More support for the wealthiest one percent won’t help the average Canadian get ahead,” said Mr. Trudeau. “Only Liberals have a plan to keep moving forward and give everyone a chance to succeed.”

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Background: Making it easier and more affordable to start and grow a business

CONSERVATIVE PARTY OF CANADA

Media Release September 24, 2019

Scheer pledges support to small businesses

New Conservative government to repeal Trudeau tax increases and reduce red tape

Small business owners can look forward to a new Conservative government repealing Justin Trudeau’s tax increases and cutting red tape, announced Andrew Scheer at Cracker Jack’s Bar and Grill today.

“Justin Trudeau thinks small businesses are tax cheats, “said Scheer. “In the last four years, it has become more expensive than ever to run a business. Trudeau’s Carbon Tax raised the price of gasoline and heating, making it harder to pay monthly bills. His payroll tax hikes hurt the bottom line, and his unprecedented tax hike on small businesses in 2017 – although Canada’s Conservatives and business leaders came together to try to stop it – ended up costing small businesses even more.”

The government should not stand in the way and make life more difficult for those trying to make a living and grow their business.

Not only are small businesses victim to the Trudeau government’s tax hikes, small businesses across the country are also struggling under a massive regulatory burden. Justin Trudeau has imposed more than 4,300 job-killing, growth-choking federal regulations on Canadian business since 2015.

A new Conservative government will take several measures to support our small businesses:

Repeal Trudeau’s tax increases on small business investments
Exempt spouses from Trudeau’s tax increases on small business dividends
Make it easier to navigate Canada’s tax system and the Canada Revenue Agency
Reduce federal regulations by 25 per cent
Implement a 2-for-1 rule for new regulations
Assign a Minister reporting directly to the Prime Minister to lead red tape reduction efforts
Mandate ministers and regulators to support innovation, economic growth, and global competitiveness
Champion Canada’s small businesses to the world

“A new Conservative government will continue to celebrate small businesses as drivers of prosperity, and not view them merely as sources of revenue,” said Scheer. “It’s time to stop Justin Trudeau’s attacks on small business owners. It is time for Canada’s small businesses to get ahead.”

FACTS:

Of the 95,000 businesses that are created in Canada each year, barely 50 per cent will survive to celebrate their tenth anniversary. Over the last four years, it has become more difficult than ever to start and grow a business.
In 2017, Trudeau proposed a disastrous set of small business tax increases that were only partially abandoned because of effective pressure by Canada’s Conservatives and massive public outcry.
Trudeau tried to hike taxes on small businesses’ investment income to 73 per cent, and then went after small business owners’ spouses, ending a long-standing tax exemption on dividend payments.
The Canadian Chamber of Commerce (CCC) reports there were 131,754 federal regulations on the books when Justin Trudeau took office in 2015. Public policy think-tank MEI reports that by 2018, the number of federal regulations rose to 136,121 – an increase of more than 4,300.
In late 2018, the Financial Post reported that regulatory burden was “killing Canada’s competitiveness.”

ANDREW SCHEER’S PLAN FOR YOU TO GET AHEAD:

Scrap the Trudeau Carbon Tax, lowering the cost of everyday essentials like gas, groceries, and home heating.
Introduce the Universal Tax Cut, saving an average couple $850.
Take the GST off home heating costs, saving your family $107 every year.
Introduce the Green Public Transit Tax Credit, saving a family of four who take transit up to $1,000.
Make maternity benefits tax-free, putting up to $4,000 back in the pockets of new parents.
Introduce the Children’s Fitness Tax Credit, allowing parents to claim up to $1,000 for sports activities.
Introduce the Children’s Arts and Learning Tax Credit, letting parents claim up to $500 for arts and learning programs.
Expand the Age Credit, benefiting the lowest income Canadians the most and giving a senior couple up to $300.
Boost the RESP, helping parents get more for their kids’ education. For some, that could be $540 more.

SUPPORTING DOCUMENTATION:

NEW DEMOCRATIC PARTY

The Leader of the NDP, Jagmeet Singh, has promised to bring in a “hard cap” of 1% on credit card interchange fees, for all small- and medium-sized businesses. CFIG is seeking clarification of whether that is a reduction to an overall cap of 1%, or a reduction to 1% of all credit card fees, even for premium cards. A further update will be provided when that information is obtained.