Ontario Helping Small Businesses in Vaughan-Woodbridge Create JobsPublished on November 25, 2019
Small business tax cut and red tape reduction creating competitive business environment
Woodbridge— Ontario is creating a climate that will support and attract business investment and job creation in Vaughan by proposing to reduce the small business tax rate and eliminate unnecessary or outdated regulations in order to help implement the government’s plan to help small businesses grow and succeed.
As announced in the 2019 Ontario Economic Outlook and Fiscal Review: A Plan to Build Ontario Together, the government is proposing to reduce the small business Corporate Income Tax rate to 3.2 per cent from 3.5 per cent, starting January 1, 2020. This would provide tax relief of up to $1,500 annually to over 275,000 businesses — from family-owned shops to innovative start-ups.
Ontario is also reducing red tape to support businesses by proposing over 80 actions to eliminate unnecessary or outdated rules. If passed, the Better for People, Smarter for Business Act, along with regulatory changes, will lower the cost of doing business by making it simpler and cheaper to comply with regulations, while also making it easier to interact with government.
“Vaughan is a city of tremendous opportunity and potential—however, high taxes and burdensome red tape have been driving investment and jobs away,” said Michael Tibollo MPP Vaughan-Woodbridge. “That is why the government is creating the conditions for success by reducing taxes and eliminating outdated and duplicative regulations, while making sure important health, safety and environmental protections are maintained or enhanced.”
Small businesses make up 98 per cent of all businesses in Ontario and account for a third of all private sector jobs.
Today’s announcement demonstrates that the government is fulfilling its promise to cut Ontario’s small business tax rate by 8.7 per cent.
Ontario will create the Premier’s Advisory Council on Competitiveness to work with business leaders and workers across the province to find ways to improve competitiveness and report back with actionable recommendations.
To date, the government has taken over 100 actions to cut red tape for businesses. These and other expected measures would save businesses $400 million in compliance costs.
Ontario's small businesses would also save $2.3 billion in 2020 through tax relief and other actions such as cancelling the cap‐and‐trade carbon tax, keeping the minimum wage at $14 per hour and supporting a reduction in Workplace Safety and Insurance Board premiums.
In January 2019, the Canadian Federation of Independent Business gave Ontario an A- in its 2019 Red Tape Report Card. That was Ontario’s highest grade ever, and a big jump from the C+ that the previous government received in 2018.