Skip to Content Subscribe Our Offers My Account Manage My Subscriptions FAQ Newsletters Canada Canadian True Crime Canadian Politics Health World Israel & Middle East Financial Post NP Comment Longreads Puzzmo Diversions Comics NP News Quiz New York Times Crossword Horoscopes Life Eating & Drinking Style Sponsored Play for Ontario Travel Travel Canada Travel USA Travel International Cruises Travel Essentials Culture Books Celebrity Movies Music Theatre Television Business Essentials Advice Lives Told Tails Told Shopping Buy Canadian Home Living Outdoor Living Tech Style & Beauty Kitchen & Dining Personal Care Entertainment & Hobbies Gift Guide Travel Guide Deals Savings National Post Store More Sports Hockey Baseball Basketball Football Soccer Golf Tennis Driving Vehicle Research Reviews News Gear Guide Obituaries Place an Obituary Place an In Memoriam Classifieds Place an Ad Celebrations Working Business Ads Archives Healthing Epaper Manage Print Subscription Profile Settings My Subscriptions Saved Articles My Offers Newsletters Customer Service FAQ Newsletters Canada World Financial Post NP Comment Longreads Puzzmo Diversions Life Shopping Epaper Manage Print Subscription HomeNewsCanadaCanadian PoliticsSmall business group tells Ottawa to take big swing at boosting jobs and growthThe policy changes would help turn around the ‘entrepreneurial drought’ that has seen more businesses close their doors than new businesses start up over the last four quartersLast updated 7 minutes ago You can save this article by registering for free here. Or sign-in if you have an account.Minister of Finance and National Revenue François-Philippe Champagne speaks during question period at the House of Commons in Ottawa on Monday, May 25, 2026. Photo by HYUNGCHEOL PARK /PostmediaOTTAWA — With the Canadian economy facing a number of nasty headwinds, the country’s leading small business organization is calling on the federal government to take a big swing at boosting growth and jobs.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Enjoy the latest local, national and international news.Exclusive articles by Conrad Black, Barbara Kay and others. Plus, special edition NP Platformed and First Reading newsletters and virtual events.Unlimited online access to National Post.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles including the New York Times Crossword.Support local journalism.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountorIn a pre-budget submission to the House of Commons finance committee, the Canadian Federation of Independent Business (CFIB) is calling on Ottawa to take a hefty swipe at the small business income tax rate, make capital investments more attractive and adopt a range of measures that would improve hiring conditions.The policy changes would be good for the economy, the CFIB says, and help turn around the “entrepreneurial drought” that has seen more businesses close their doors over the last four quarters than new businesses crop up.In its submission, the CFIB argues that its sector is the backbone of any country’s economy and that fewer small businesses means less competition and innovation, not to mention fewer larger companies down the road. The CFIB says small and medium-sized businesses are responsible for 64 per cent of the private sector jobs in Canada and about 50 per cent of the economy.“A country that neglects its small businesses, eventually finds its economic resilience has thinned and its communities have weakened,” the organization wrote to the committee.The document, obtained by National Post, was submitted to the parliamentary committee of MPs responsible for fiscal policy, but has not yet been delivered to Finance Minister François-Philippe Champagne. The federal budget, normally unveiled in the spring, was moved last year to the late fall for the first time.The Canadian economy has so far held up relatively well since U.S. President Donald Trump started imposing new tariffs on key Canadian industrial sectors and many other countries. Canada has also been struggling with weak productivity, a sluggish jobs market, tepid inflation hikes, rising government debt and the effects of international conflicts in Iran and Ukraine.In its submission, the CFIB recommends that Ottawa responds to these challenges by cutting the small business tax rate to 6 per cent from 9 per cent, increasing the small business income tax threshold to $700,000 from $500,000 and the passive income threshold to $60,000 from $50,000 and expanding the capital cost allowance (CCA) so that the tax deductions apply to more types of capital investments.The submission also recommends reducing the capital gains inclusion rate when it applies to second tranches of gains, introducing a new lower rate for employment insurance premiums for smaller businesses and removing internal trade barriers between provinces and territories.Don Drummond, a former high-ranking official at the Department of Finance and chief economist at TD Bank, said he agrees with many of the CFIB’s recommendations, including more attractive capital cost allowance provisions and inter-provincial free trade.But Drummond, now a fellow-in-residence at the C.D. Howe Institute think-tank, said he doesn’t like the idea of further increasing the gap between small and large businesses. He suggested that any preferential treatment should be given to new companies, not those who remain small. “We need to encourage firms to grow, not reward them for remaining small.”The CFIB is also asking the federal government to help small businesses boost hiring by increasing the incentives to hire young Canadians, maintaining the temporary foreign worker program and encouraging older workers by increasing the basic exemption for the Canada Pension Plan.The CFIB is also calling on Ottawa to make it a top priority to balance its budget and to adopt legislated spending limits, except when there’s a global crisis.John Fragos, a spokesman for Champagne, said pre-budget consultations haven’t started yet but that the government looks forward to meeting again with CFIB and other business organizations to look for ways to improve the economic landscape.In its spring economic update last month, the government said it expected to post a deficit of $66.9 billion for the past year, slightly less than expected, due to improved fiscal outcomes.But Ottawa’s fiscal situation remains dire. The federal government has now accumulated $1.27-trillion in debt, almost half of which has been added over the last five years.National PostOur website is the place for the latest breaking news, exclusive scoops, longreads and provocative commentary. Please bookmark nationalpost.com and sign up for our daily newsletter, Posted, here. Join the Conversation This website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.