CFIB response to Ontario’s Fall Economic Statement

On behalf of our 38,000 small- and medium-sized business members across all sectors, we are encouraged by several measures included in today’s Fall Economic Statement. The government’s commitment to automatically match small business subclass property tax reductions implemented by municipalities is particularly welcomed. In a CFIB September survey, 69% of small businesses agreed that their municipality should adopt a small business property subclass.

The Ontario government’s move to mirror the federal government’s improved access to the small business deduction is a positive step on the road to small business recovery and growth.

Since fuel/energy costs are the top cost constraint for small businesses, we applaud the provincial government for extending its gas and fuel tax reductions for another year.

Many small businesses are still struggling. Well over half (59%) are still making less than their normal revenues. A troubling 42% have not yet been able to pay back a penny of their average COVID-related debt of nearly $130,000.

Heading into pre-budget season, we will continue to urge the Ontario government to maintain a ‘do no harm’ approach and not introduce any new costs on small businesses. We will also keep asking the provincial government to implement measures such as increasing the exemption thresholds for the Small Business Tax Rate and Employer Health Tax and indexing them to inflation annually. Actions like these would go a long way towards moving the needle on recovery and setting up small businesses for success.