Small businesses in communities like Steveston will benefit from a tax cut this year, said public safety minister, Marco Mendicino, from inside the Steveston Dock’s Blue Canoe Restaurant.
The federal minister was joined by Richmond’s two Liberal MPs, Parm Bains and Wilson Miao, and members of the Steveston Merchant Association to announce a tax cut for small businesses as part of the federal government’s 2022 budget, last week.
Mendicino described Steveston as an “incredible local, authentic, personal commitment of a small business community” and the tax cut will help shops and the city to grow all together.
Small businesses will benefit from a reduced tax rate of nine per cent on their first $500,000 of income compared to a regular 15 per cent for larger businesses, according to the Budget 2022 report.
However, Mendicino said these business owners may be “dissuaded from continuing to grow” into medium-sized businesses with a taxable capital of $15 million.
In order to prevent this, the 2022 budget is “committed” to raising the capital limit to $50 million where small businesses can continue to grow while benefitting from the reduced tax rate.
“For small businesses, it means more opportunities. They can take that next chance, hiring that next employee while taking advantage of that lower nine per cent tax rate,” he said.
“This is one of many ways in which Budget 2022 is going to help our economy bounce back and fire on all cylinders.”
While the focus was on business, Mendicino took the opportunity to highlight a number of other budget items, including housing, childcare and gang violence.
He said his government will be doubling the total number of new housing starts over the next decade.
Furthermore, Mendicino said his government is reducing the cost of childcare by 50 per cent and has plans to "dramatically increase" the number of affordable childcare spaces in B.C. and other provinces.
This is something he describes as “transformative” for young families.
Gang violence and public safety were also addressed by Mendicino.
His government is looking to STOP gun violence, which he said has impacted communities across Canada. Part of Budget 2022 is being allocated to launch a “buyback program.”
“There are commitments in the budget to ensure that we make good on our commitment to launch a mandatory buyback program to get those AR-15s and assault-style rifles out of our communities,” said Mendicino.
“We imposed a national ban two years ago, because those guns have no place in our communities whatsoever.”
