With the federal government set to deliver its budget tomorrow, new survey results from the Canadian Federation of Independent Business indicate that small business owners remain very concerned about proposed tax changes.
Nearly two-thirds of respondents said that the changes have caused them to rethink whether to continue being in business, says the CFIB. The proposed changes to passive investment rules continue to be a major worry despite the decisions to allow up to $50,000 in passive investment income per year and reduce the small business rate to 9 per cent, says the CFIB.
Expecting a negative impact
Eighty-six per cent of respondents with passive investments said the proposed changes would have a negative impact on their business and 94 per cent added that it would be harder to keep savings in case of a downturn or to grow the business.
"Small businesses are at the very heart of our economy and the federal government's role should be to promote an environment which is conducive to their growth and competitiveness," stated Dan Kelly, CFIB president in a Feb. 26 announcement. "Small business owners have been clear regarding their concerns, and 94 per cent urge the government to abandon the proposed changes to passive investment rules. We hope they won't be let down tomorrow."