Small business leaders slam federal budget as “missed opportunity” for relief and growth

CFIB calls for meaningful tax relief as federal budget falls short

The federal budget was announced on Tuesday, and criticism came from multiple directions. 

The Canadian Federation of Independent Business (CFIB) continues to advocate for small businesses and SMEs, saying the budget failed to deliver meaningful tax relief.

Christina Santini, Director for National Affairs at CFIB, said one of the main changes they continue to seek is a reduction in the small business tax rate, which continues to hinder smaller enterprises.

She explained that although the budget encouraged investment, less than half of CFIB members are in a position to do so.

The new Building Communities Fund and Regional Tariff Response drew criticism for leaving many small firms out. 

Santini noted more assistance was provided for bigger corporations.

Santini stated the harsh reality CFIB is concerned about.

Santini highlighted a positive takeaway but said it mainly benefits the 35 percent she referenced earlier.

She highlighted one of the main issues CFIB will continue to advocate for.

Santini added that CFIB is now focusing on the upcoming spring economic update, assuming the government avoids a non-confidence vote.

President Dan Kelly said reducing the small business corporate tax rate could have freed millions for investment in employees, technology, and operations.

Instead, deficits remain above $50 billion per year, which CFIB warns could mean higher taxes for small firms.

While CFIB noted some positive steps, including the reinstated Accelerated Capital Cost Allowance and the increased Lifetime Capital Gains Exemption, many measures were repeated from 2024. 

CFIB says it will continue pushing for lower taxes, fairer access to programs, and stronger support for Canada’s entrepreneurs.

Story by: Evan Gibb