Economy Taxes

Reduce the small business tax rate to 9% (from 11%).

Liberal Platform Page 80 October 5, 2015
Achieved
Jan 2019

What’s new for corporations

Government of Canada January 01, 2019

The small business deduction increases to 18% effective January 1, 2018, and to 19% effective January 1, 2019, resulting in small business tax rates of 10% and 9%.

Oct 2017

Federal government to cut small business tax rate to 9% by 2019

Toronto Star October 16, 2017

Amid a growing clamour in its ranks, the federal Liberal government says it will finally fulfil a campaign pledge to cut the small business tax rate to 9 per cent by 2019.

And it ditched outright one of three other controversial tax proposals unveiled midsummer that had triggered an angry backlash among small business owners, farmers, fishery licence holders, doctors, lawyers, opposition members and Liberal backbenchers alike.

Trudeau and Morneau, along with two other ministers and MPs, went to a Main Street Italian restaurant in Stouffville Monday morning to confirm news leaked the night before that it would lower small business taxes as promised in the 2015 election campaign, a pledge it had put the brakes on once in power.

This promise was originally marked as broken as the 2016 federal budget specifically mentioned that there would be no change to the small business tax rate. However, more than a year later, the government declared its willingness to fulfil this promise by the end of their current mandate. As this promise had no original timeline, it is now marked as being in progress.

Mar 2016

Bill Morneau defends Liberal’s unchanged corporate tax rate

CBC News March 23, 2016

As small businesses lob accusations at the federal government for failing to deliver on a corporate tax cut, Finance Minister Bill Morneau says the Liberals' budget is helping business by helping customers.

With their 2016 budget, the Liberals reneged on a campaign promise to cut the corporate tax rate to nine per cent by 2019, choosing instead to fix the rate at 10.5 per cent.

In a statement, a "deeply troubled" Canadian Federation of Independent Business estimated that this broken promise would cost small firms more than $900 million per year by 2019.