Thursday’s federal budget will look to make life easier for Canada’s small- and medium-sized businesses, says Finance Minister Francois-Philippe Champagne.
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Champagne → look → businesses
Champagne provided business leaders a preview of the government’s fiscal plan in a breakfast speech at the Canadian Club Toronto on Monday.
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Champagne → provide → Monday
The budget — the second to be delivered under Prime Minister Mark Carney — is expected to support the Liberal government’s push to reduce Canada’s reliance on the United States by building up the domestic economy.
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budget → deliver → economy
In a brief fireside chat after Monday’s speech, Champagne told the crowd Ottawa’s ambitions to stoke private investment and improve productivity are not limited to Canada’s largest companies.
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ambitions → tell → companies
He acknowledged that one of the barriers to investment, particularly among Canada’s small businesses, is the complexity of the tax code.
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one → acknowledge → code
“We had a number of boutique things and things which might be difficult if you’re small and medium-sized businesses, unless you have a tax adviser to figure out what’s the best way forward,” Champagne told CBC News journalist Peter Armstrong during a fireside chat after his speech.
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Champagne → have → speech
“I think you will see in this budget a journey to fixing a number of things, to make things more simple, to simplify the life of small and medium-sized businesses.
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things → think → businesses
And I think that on Thursday, those who represent small businesses will see themselves in that budget.”
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themselves → think → budget
The Canadian Federation of Independent Business has called on Ottawa to use the Nov. 5 budget to lower the small business tax rate and fix gaps in the federal tariff relief regime that box out smaller firms.
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that → call → firms
“Small businesses tell us they don’t want handouts.
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they → tell → handouts
They want broad policies that would help them reinvest in their businesses and plan for the future,” said Corinne Pohlmann, CFIB executive vice-president of advocacy, in a statement on Oct. 29.
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Pohlmann → want → Oct.
“While major project investments usually get the spotlight, we also need to be building the foundation of our economy by making it more attractive to start and grow a small business.”
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it → get → business
Champagne would not offer specific examples of what the federal government is proposing in Thursday’s budget.
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government → offer → budget
He did suggest Ottawa is considering more changes to the Scientific Research and Experimental Development program, which encourages firms to invest in themselves to develop innovative technologies.
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which → suggest → technologies
One of the big-ticket measures accounted for in this upcoming budget is the productivity mega-deduction, which the government announced in September and has continued to highlight as a cornerstone of its investment policy.
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government → account → policy
It’s estimated to cost $36 billion over five years.
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It → estimate → years
The mega-deduction allows businesses to immediately write off the full value of an eligible capital investment in its first year, rather than over the lifetime of its use.
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businesses → allow → use
The government argues deferring tax payments in this way will encourage firms to invest more in technology and tools that can make their workers more productive.
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workers → argue → technology
Champagne said the productivity mega-deduction isn’t just for large firms that want to break ground on pipelines and other nation-building projects.
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that → say → pipelines
He said it could also help a local café buy a new coffee machine, for example.
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café → say → example
“It’s our government’s signal to Canadians to use their capital right here in Canada, to invest in new machinery and technology, to expand their enterprises and to support a Canadian economy that nurtures and develops more workers and innovators,” he said.
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he → ’ → workers
The minister did not answer directly when asked whether the budget will offer further details about a planned sovereign wealth fund or a proposal to open Canada’s airports up to private investment.
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budget → answer → investment
The Liberal government has set an ambitious goal of attracting $1 trillion in private investment over the next five years.
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government → set → years
Since Carney took office, the federal budget framework has pivoted sharply away from day-to-day government spending and toward a capital-focused agenda that prioritizes infrastructure and other nation-building projects.
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that → take → infrastructure
“At its core, our plan is about changing Canada’s growth model.
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plan → change → model
We are building one Canadian economy, unlocking private investment, raising productivity, expanding our productive capacity, and diversifying our trade,” Champagne said in his speech.
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Champagne → build → speech
Armstrong asked Champagne how renewed momentum in U.S. trade talks could affect Ottawa’s spending plans.
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momentum → ask → plans
The finance minister brushed off the question.
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minister → brush → question
“It’s not about them,” he said.
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he → ’ → them
“This is about us, regaining our ability to build.”
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This → regain → ability
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