The CEC is proposing zero business income tax for qualifying Canadian small businesses, so earnings stay in the business and in the community. Add your voice to the campaign.
Small businesses employ most working Canadians, yet they operate on thin margins. Every dollar taken in tax is a dollar that cannot become a hire, a raise, a new machine, or an apprenticeship. Here is where the numbers stand today, and where the Charter thinks they should go.
9%
The federal small business deduction rate on the first $500,000 of active business income for a qualifying Canadian-controlled private corporation. Provincial rates apply on top.
Source: Canada Revenue Agency — corporation tax rates6%
The Canadian Federation of Independent Business has called for a reduction of the federal small business tax rate as a way to support job creators.
Source: Canadian Federation of Independent Business0%
Manitoba's provincial small business income tax rate is zero on eligible income. Federal corporate tax still applies — this is the provincial portion only.
Source: Province of Manitoba — corporate income taxes0%
Zero business income tax for qualifying Canadian small businesses, so earnings stay in the business and in the community. This is a proposal from the Canadian Economic Charter — it is not current law.
Proposal — Canadian Economic Charter
Rates shown are for general information and change over time. The 0% figure advocated by the Canadian Economic Charter is a policy proposal, not current Canadian tax law.
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These are potential uses of retained earnings, not guaranteed outcomes — but they are what owners across the country say they would do first.
Money kept in the business can become another paycheque in the community.
Retained earnings can fund equipment, premises and the tools people need to do good work.
Growth is what turns a two-person shop into a regional employer.
Margin creates the room to try something new instead of just surviving the quarter.
Apprenticeships and skilled trades are built by businesses that can afford to teach.
Strong local businesses hold up the towns, main streets and families around them.
Frank Stronach arrived in Canada with almost nothing and built one of the country's largest employers. He has argued for decades that the people closest to the work create the value — and that a tax system which punishes small operators before they ever grow holds the whole country back.
Watch his case for taking the tax burden off Canada's small businesses, then add your voice below.
Read approved stories from Canadian business owners and join the discussion. Every comment is reviewed before publication.
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