CFIB Pushes Premiers for Small Business Tax Relief and Internal Trade Reform
Event summary
- CFIB urges Premiers to prioritize small business tax relief and internal trade reform at the Council of the Federation meeting in Prince Edward Island.
- Federal small business tax rate has remained unchanged at 9% since 2019, while provincial average has dropped to 1.6%.
- CFIB estimates lowering federal tax rate to 6% and increasing deduction threshold to $700,000 could save small firms up to $33,000 annually.
- 69% of small businesses report no improvement in interprovincial trade barriers over the past year.
- Direct-to-consumer alcohol shipping agreements remain unfulfilled 50 days past the May deadline.
The big picture
CFIB's push comes amid three consecutive quarters of small business exits outpacing entries, highlighting structural challenges in Canada's entrepreneurial ecosystem. The call for tax relief and trade reform reflects broader tensions between federal and provincial governance, with provinces leading on tax cuts while interprovincial barriers persist. The outcome could signal shifting priorities in economic policy, particularly as small businesses grapple with global trade uncertainty and rising costs.
What we're watching
- Tax Relief Momentum
- Whether Premiers will advocate for federal small business tax relief given provincial progress.
- Trade Barrier Execution
- The pace at which provinces implement overdue internal trade agreements like direct-to-consumer alcohol shipping.
- Entrepreneurial Confidence
- How delayed reforms impact small business sentiment and expansion plans across provincial borders.