Fiscal and Economic Impacts of Curtailing the Planned Tax Cut for Small Businesses

Get the report
Fiscal and Economic Impacts of Curtailing the Planned Tax Cut for Small Businesses.PDF

Summary
PBO estimates that the Budget 2016 decision to defer reductions in the small business tax rate will reduce federal revenues by $45 million in 2016-17, and increase revenues by $155 million in 2017-18 rising to $815 million in 2020 21 (Summary Table 1).  The initial reduction in revenues reflects timing differences in the tax reference years related to the filing deadlines for personal and corporate income tax returns.

Summary Table 1 – Fiscal impact of changes to the small business tax rate

PBO estimates that by 2020-21, Budget 2016 changes to the small business tax rate will reduce real GDP by $300 million (0.015 per cent) and the level of employment by about 1,240 jobs created or maintained (Summary Table 2).

Summary Table 2 – Economic impact of changes to the small business tax rate

Source: Fiscal and Economic Impacts of Curtailing the Planned Tax Cut for Small Businesses

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s