FINWIRES · TerminalLIVE
FINWIRES

CFIB Calls on Canada's Federal Government to Follow Provinces by Cutting Small Business Taxes

By

With a growing entrepreneurial drought across Canada, the Canadian Federation of Independent Business (CFIB) is calling on the federal government to follow the lead of provinces by making changes to the small business corporate tax rate.

At 9%, the federal rate hasn't changed since 2019, notes CFIB.

Since then, five provinces -- Ontario, Quebec, Newfoundland and Labrador, Prince Edward Island and Nova Scotia -- have made progress in reducing their corporate tax rates on small businesses, it said. Also three provinces now have higher thresholds (Saskatchewan and PEI at $600,000 and Nova Scotia at $700,000), it added.

In a new analysis published on Wednesday, CFIB is also pushing back against several myths around the Small Business Deduction (SBD), including claims that it discourages business growth, misallocates capital, or primarily benefits rich shareholders.

CFIB is calling on the federal government to lower its rate from 9% to 6%. In addition, the $500,000 small business threshold should have been raised to over $700,000 by now just to keep pace with inflation. Parliament's Industry Committee recently recommended it be raised to $1 million in order to enhance Canada's productivity.

"The small businesses tax advantage is a strength, not a flaw, of Canada's corporate tax system, said Simon Gaudreault, chief economist and vice-president of research at CFIB. "It helps small firms reinvest, create jobs, and cope with the higher costs of being small."

Related Articles

Treasury

Osisko Development Closes US$225.0 Million Offering

Osisko Development (ODV.V), down 2.2% at last look in U.S. after-hours trading, said Tuesday it closed a private placement offering of US$225 million aggregate principal amount of 4.125% convertible senior notes due 2031.The company said net proceeds from the offering are expected to total about US$215.9 million after deducting commissions and estimated offering expenses, but before deducting the cost of capped call transactions.Osisko said the proceeds will be used to fund capped call transactions entered into with certain financial institutions in connection with the offering, as well as for the development of the Cariboo Gold Project and general corporate purposes.The company added that the initial purchasers of the notes have been granted an option to purchase up to an additional US$25 million aggregate principal amount of notes.Separately, Double Zero Capital LP, an affiliate of the company, agreed to purchase US$50 million aggregate principal amount of the notes in a concurrent private placement.Shares of the company were down US$0.06 to US$2.72 at last look in US after-hours trading, after closing C$0.01 down to C$3.84 on TSX Venture Exchange.

$ODV$ODV.V
Treasury

US Treasury Closing Levels

3:00 Tuesday vs 3:00 Friday2yr 99-14 vs 99-09; 4.047% vs 4.121%5yr 98-20 vs 98-09; 4.183% vs 4.258%10yr 99-02 vs 98-12; 4.491% vs 4.558%30yr 99-19 vs 98-31+; 5.025% vs 5.064%2/10 44.178 bps vs 43.472 bps5/30 84.160 bps vs 80.574 bps

Treasury

Manulife Financial to Issue S$500 Million Notes Offering Due 2036

Manulife Financial (MFC.TO) on Tuesday priced an offering in Singapore of S$500 million of 2.880% subordinated notes due June 4, 2036.The offering will qualify as Tier 2 capital for Manulife. The notes will bear interest at a fixed rate of 2.880% until June 4, 2031 and then at a rate of 0.931% over the five-year Singapore Overnight Rate Average Overnight Indexed Swap (SORA OIS) rate.Manulife may, with OSFI approval, redeem the notes in whole, but not in part, on June 4, 2031, a statement said.Manulife shares were last seen down $0.57 to $53.30 on the Toronto Stock Exchange.Price: $53.43, Change: $-0.43, Percent Change: -0.80%

$MFC.TO