Some Businesses Will be Saving A Lot of Money in Brampton
The Ontario government recently brought in their Fall Economic Statement, known in some quarters as a 'mini budget', whereby they announced initiative such as reviving a highway project that would go through Brampton and the western GTA area, cancelling rent controls on new residential units and a number of other measures meant to streamline government and reduce spending.
In the midst of that, the federal government also recently brought forward their fall economic statement. Recently, there was a roundtable for small businesses and the federal small business minister in Brampton where business owners outlined what they would require in terms of how much taxes they wanted to pay in order to stay competitive.
"The 2018 Fall Economic Statement is the next step in the Government’s plan to grow the economy by investing in middle class jobs and encourage businesses to make investments that will position them for long-term growth, and create jobs across the country," said Brampton MP Ruby Sahota in a press release.
Here are some of the highlights from the federal government's fall economic statement:
Allowing the full cost of machinery and equipment used in the manufacturing and processing of goods to be written off immediately for tax purposes, and by introducing the Accelerated Investment Incentive to support investment by businesses of all sizes and across all sectors of the economy.
Allowing specified clean energy equipment to be eligible for an immediate write-off of the full cost in order to achieve climate targets and position Canada to be more globally competitive.
$800 million over five years to the Strategic Innovation Fund, which will support innovative investments across the country and in all economic sectors. $100 million will focus on providing support to the forest sector.
Launching an Export Diversification Strategy aimed at increasing Canada’s overseas exports by 50 per cent by 2025.
Remove barriers to trade within Canada by working with provinces and territories to enable businesses to transport goods more easily, to harmonize food regulations and inspections, to align regulations in the construction sector, such as harmonization of building codes.
Facilitate greater trade in alcohol between provinces and territories.
A Social Finance Fund that gives charitable, non-profit and social purpose organizations access to new financing, and connects them with non-government investors.
A special fund set aside to support Canadian journalism.
“Across the country, a strong and growing middle class is driving economic growth, creating new jobs and more opportunities for people to succeed. This Fall Economic Statement is about growing the economy by investing in middle class jobs, helping Canadian businesses compete, and continuing to deliver real progress for the middle class. With the new measures in the Statement, and the continued hard work of Canadians, the Government is building an economy that works for everyone," said Finance Minister Bill Morneau.
Surprisingly, one group that had some good things to say about the federal government's plans was the Canadian Federation of Independent Business, whom in the past had heavily criticized the government for increasing small business taxes rates.
"We are pleased that the government has chosen to introduce these incentives as they will encourage new business investment and boost innovation while helping them to maintain their competitiveness with their American counterparts," said Dan Kelly, the President of CFIB, citing specifically the allowance of businesses to write off costs for machinery, equipment and new assets.
The fall economic statement from a government usually comes before the full budget expected in the spring of 2019. For the federal Liberals, next year's budget will be the final one before the October election, so expect the governing party to open up the coffers a bit to sprinkle a bit of spending around for everyone.
What do you think of the federal government’s latest announcements?
- The provincial government is committed to helping small businesses in Brampton
- Climate, clean tech could take centre stage in federal economic recovery plans
- Brampton's Getting a Major Investment from the Federal Government
- Provincial government providing tax breaks to small businesses
- Provincial government working towards creating a more competitive business environment