Small business

1. Policy – Small Business –
NDP, LPC and CPC
By: Paul Young, CPA, CGA

2. Examples of small business

3. Small Business - Stats
Issues Impact Other Sectors
GDP • 600B • 1.4B
Salaries • Average Weekly Salary $763 or
40K/year
• Average weekly salary for all
sectors $851 or about
$44K/year

4. Key issues for small business
• Access to capital
• Access to skill workers
• Taxation (property, payroll, corporate taxation, etc.)
• Red Tape
• Input Costs (raw materials, purchased goods, rent, hydro, labor, etc.)

5. Government Policies / Current

6. NDP / Small Business Policies
• NDP proposes cutting the small business from 11% to 9% (Harper has included the cut in the 2015-2016 budget, but phases it over time -
http://www.cfib-fcei.ca/english/article/7366-major-tax-relief-for-small-businesses-in-federal-budget.html
• Julian mention cash hoarding, but is missing facts on cash investment that bulk of the cash holdings is with a few companies ( see slide 37-
39 - http://www.slideshare.net/paulyoungcga/corporation-taxation-canada-44675640)
• Julian does not mention CPP enhancement and/or the propose cap and trade system. Both those policies would add costs to business.

7. Peter Julian Comments -

8. Liberal Canada – Small Business Policy

9. CPC/Small Business
• Harper has cut GST from 7% to 5%
• Harper has brought in EI cut of 15%. The cut is targeted at small
business
• Harper has reduced the corporate tax rate to 11% with plans to bring
the rate to 9% over the next few years
• Harper has controlled the growth in payroll taxation
• Harper continues to focus on red tape

10. CFIB PoliciesCFIB Policy NDP LPC CPC
CFIB rejects CPP
enhancement
• NDP supports CPP
enhancement
• LPC supports CPP
enhanacement
• CPP does not support CPP,
instead promotes TFSA,
RRSP and pooling pension
plan
Taxation • NDP will lower Corporate
Tax for small business to
9%
• Would eliminate the 15%
EI cut for small business
• No comment on lowering
corporate rate for small
business
• EI Holiday/cut to EI plan
• Corporate tax rate will be
lower from 11% to 9%
over the next few years
• EI cut of 15% for qualified
small business
Red Tape • No comment on red tape.
The party is proposing
new laws for the
environment including cap
and trade
• LPC like the NDP proposes
cap and trade system.
• CPC plan to work on
reducing red tape for
business

11. CFIB
CFIB Policy NDP LPC CPC
Skill trades • No comment, but one
would guess any
money on policies for
skills trades would be
dictated by the unions
• Just commitment to
work with unions on
skills
• New loans and/or
other programs to
support skills trades
Government Size • NDP likely will add
more government as
they add new
programs
• LPC is not clear on the
size of government
• CPC are committed to
managing the size of
government including
cost controls