(OTTAWA) – The Green Party of Canada released the following statement:
“Finance Minister Bill Morneau’s tax reforms aimed at Canadian small businesses cast too wide a net. Instead of rushed tax changes to small businesses, we should be doing what Greens have advocated all along: restore the tax rate on large corporations to 2008 levels," said Elizabeth May, Leader of the Green Party of Canada (MP, Saanich-Gulf Islands).
“Under Stephen Harper, corporate taxes dropped to 15 percent, the lowest rate amongst G7 countries. By restoring the federal corporate tax rate to only 19.5 percent, the Liberals could follow through on their promise to lower the small business tax rate to 9 percent. The corporate tax rate in 2000 was 28.5 percent, while the U.S. taxes corporations at 34 to 37 percent. This is hardly an impossible proposal.
“Any tax changes that impact small businesses require more time to phase in restructuring. The government could have avoided this backlash if the House had adopted my Private Member’s Bill, the Creation of the Small Business Impact Assessment Act, which would have required advance review and evaluation of the impact of all government measures on small business.”
David Hachey, GPC Finance Critic, said: “We need to preserve or enhance the tax incentives supporting entrepreneurs, innovation and job creation while ensuring that high incomes are not unfairly sheltered. We can close perceived loopholes without axing financial tools legitimately used by business owners and their families.
“The Green Party continues to stand up for small business, and for tax incentives and direct rebates for businesses investing in the modern, clean-tech economy,” Mr. Hachey said.
Bruce Hyer, GPC Deputy Leader and small business owner, added: “Nine out of ten new Canadian jobs are created by small businesses. We have two parties of Big Business and one party of no business. The Green Party of Canada will remain the only party that truly understands and supports small businesses.”
Ms. May will file her tax consultation letter with Minister Morneau's office later this week. The document will be publicly available at that time.
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