For the Canadian Entrepreneurs Incentive (CEI) to effectively encourage investment and entrepreneurship throughout Canada, it should not impose exclusions based on sector.
The CFIB argues that there is no valid public policy reason to deny the benefits of this tax incentive to business sectors like agriculture, restaurants, or medical practices while extending it to retailers and construction firms.
They call for the government to simplify the CEI and broaden its eligibility criteria to ensure equity, transparency, and simplicity.
The proposed increase in the inclusion rate to 66.7% is seen as detrimental to Canadian small and medium-sized enterprise (SME) owners who rely on investments within their corporations for future reinvestment, such as purchasing new equipment, expanding operations, or cushioning against economic downturns and retirement.
The CFIB contends that this change will make it more challenging for many businesses to secure financing needed for growth or to navigate difficult economic times.
The claim that raising the inclusion rate will primarily affect the wealthiest Canadians is viewed as misleading. Many business owners, their employees, and customers will also bear the impact.
To genuinely support Canada’s middle and aspiring middle classes—ranging from plumbers and physicians to farmers and chocolatiers—the government should heed these recommendations.
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