Sask NDP Leadership Race Heats Up Over Erin Weir's Small Business Tax Proposal
"Provincial NDP leader-ship candidate Erin Weir says he would like to see major changes to how small businesses are taxed in Saskatchewan, but a couple of his opponents argue in favour of the status quo. "
The basic philosophy behind today's announcement is replacing a no-strings-attached corporate tax break with more targeted tax measures," Weir said Thursday in Regina.
Weir noted the current system allows Canadian-controlled private corporations to pay a provincial tax rate of two per cent, instead of 12 per cent, on Saskatchewan profits up to $500,000. "
This measure goes far beyond helping genuinely small businesses. It's become a loophole that costs the provincial government $351 million per year, according to the last budget," Weir said.
He proposes dropping the limit to $100,000 from $500,000 and using half the increased tax revenue for credits to help small businesses and the rest for priorities such as reinstating the film employment tax credit, which was cut this year.
All three of his opponents agree about reinstating the film employment tax credit, but two, Cam Broten and Ryan Meili, raised concerns about Weir's small business taxation ideas. "I do think that businesses that make less than $500,000 per year are genuine small businesses," Broten said. "I'm not convinced it's wise to kick all of those businesses out of the small business tax rate."
Saskatoon Star Phoenix
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