Canadian Federation of Independent Business Critiques Trump’s ‘Big Beautiful Bill’ as Detrimental
In a bid to enhance Canada’s tax competitiveness and stimulate economic productivity, the Canadian Federation of Independent Business (CFIB) has urged both federal and provincial governments to reduce corporate income tax rates for small enterprises and to elevate the small business deduction threshold, while also indexing it to inflation.
“U.S. tariffs are not the only competitive issue facing Canadian small businesses,” asserts Bradlee Whidden, a CFIB senior policy analyst and co-author of the report.
Quebec’s Tax Burdens Unveiled
This call to action follows a recent CFIB report juxtaposing business tax obligations in Canada and the United States, revealing that small businesses in Quebec and Atlantic Canada are among the most heavily taxed within the ten provinces.
The report indicates that a Canadian microbusiness—defined by the CFIB as comprising four employees—bears an average tax burden exceeding 20% in comparison to a similar enterprise in the U.S.
Furthermore, small businesses, with approximately 25 employees, face tax liabilities that are 23% higher than their American counterparts.
Even the provinces deemed most competitive, such as British Columbia for microbusinesses and Saskatchewan for small firms, exhibited tax burdens that surpassed the majority of U.S. states.
Consequence of Trump’s ‘Big Beautiful Bill’
The CFIB underscores that the recent “Big Beautiful Bill,” heralded by President Donald Trump, has exacerbated the tax disparity between Canada and the U.S.
The federation’s verdict? “If Canada aims to retain investment, it must lower taxes,” they articulated in a statement on September 11.
“U.S. tariffs aren’t the sole competitive hurdle for Canadian small businesses,” stated Bradlee Whidden.
“The evidence is irrefutable: smaller enterprises in Canada confront a significant tax disadvantage that has become entrenched due to the recent U.S. legislative changes,” remarked Juliette Nicolaÿ, CFIB’s policy analyst for national affairs and co-author of the report.
“The data speaks for itself: Canadian small businesses are at a pronounced disadvantage, accentuated by the recent pro-business alterations in U.S. tax policy,” continued Whidden.
“To foster competition and uplift living standards, Canada must undertake tax reductions. While payroll taxes are burdensome on both sides of the border, the real disparities lie in corporate and property tax obligations.
In Canada, this divide translates to diminished funds for wages, operational endeavors, and growth,” he concluded.
Quebec’s Tax Performance Criticized
Provincially, the CFIB rated Quebec and Atlantic Canada as the least favorable performers concerning tax burdens, with western provinces faring marginally better but still falling short of the U.S. average.
Even the most competitive regions, like British Columbia for microbusinesses and Saskatchewan for small firms, remained saddled with tax loads surpassing the majority of U.S. states, according to CFIB’s findings.
For microbusinesses, the rankings of the five best (1-5) and worst (26-30) jurisdictions are as follows:
| 1. South Dakota (USA) | 26. Newfoundland and Labrador (CAN) |
| 2. North Dakota (USA) | 27. Prince Edward Island (CAN) |
| 3. Wyoming (USA) | 28. Nova Scotia (CAN) |
| 4. Florida (USA) | 29. New Brunswick (CAN) |
| 5. Texas (USA) | 30. Quebec (CAN) |
In the realm of small businesses, the rankings of the five best (1-5) and worst (26-30) jurisdictions are:
| 1. South Dakota (USA) | 26. Nova Scotia (CAN) |
| 2. Wyoming (USA) | 27. Prince Edward Island (CAN) |
| 3. North Dakota (USA) | 28. Newfoundland and Labrador (CAN) |
| 4. Florida (USA) | 29. New Brunswick (CAN) |
| 5. Texas (USA) | 30. Quebec (CAN) |
In addition to advocating for federal and provincial tax reductions, the CFIB is calling on municipalities to work collaboratively with provincial administrations to close the property tax gap between commercial and residential properties.
“Trade disruptions have highlighted Canada’s ongoing struggle to maintain competitiveness relative to the United States,” remarked Juliette Nicolaÿ, CFIB’s national policy analyst and co-author of the report.
An Analyst’s Plea: Addressing the Growing Gap
“While external factors are beyond our control, the widening gulf between Canadian small firms and their U.S. counterparts cannot be overlooked,” she continued.
“It is imperative for governments to implement policies that mitigate the cost of conducting business within Canada.”
Source link: Lavalnews.ca.
