Montreal thrives thanks to its diverse scene of small businesses. From independently-owned restaurants to startups to depanneurs, small-scale entrepreneurs make Montreal the vibrant city we know and love today.
Running a small business is anything but easy, as any owner will tell you. Thankfully, the Trudeau government is offering a minor respite to small business owners: a tax cut.
Announced this morning, the federal government is lowering the small business tax rate from 10.5% to 9%, reports CBC.
If you’re not too savvy on all-things tax-related, this basically means that small business owners won’t have to pay as much in taxes every year, thus saving money that can be better spent elsewhere.
So as hard as it is to run a small business in Montreal, or anywhere in Canada, things will get marginally easier thanks to the tax cut.
The taxation change comes amid a whirlwind of criticism for the Trudeau government’s original plan on tax reforms.
Previously, some changes the Trudeau government were going to make were seen as damaging to small business owners, the middle class Canadians the Prime Minister is always trying to help, or so he says.
Fortunately the Prime Minister and Finance Minister Bill Morneau took the criticisms to heart and made some changes to their tax reform plans.
The small business tax cut is probably the biggest change all of us middle-class folk need to worry about. Other changes are going to target rich Canadians who have used incorporated small businesses to avoid higher taxes.
Getting funds from investors and venture capitalists won’t be affected, either, reports CBC, meaning startups won’t be negatively impacted by any reforms.
So while this isn't going to entirely "save" Montreal, the tax breaks will do a lot for citizens of the city. The government can always do more to help small business owners, but this, at least, is a helping hand rather than a hinderance.
Saving money is never a bad thing and hopefully the rest of the federal governments economic alterations will similarly help small businesses in the long run.