business

Cutting B.C.’s small business tax rate will discourage businesses from growing

British Columbia’s provincial budget (released yesterday) announced a tax cut for small businesses, which is being billed as part of the government’s plan to “help businesses create jobs, grow and compete.”While tax cuts can often be a tool for encouraging businesses to grow, this specific tax cut is problematic. In fact, the proposed reduction in the small business tax rate may actually discourage some businesses from growing.This is because cutting the small business rate will reinforce an existing problem in the province’s tax system. Under the province’s current tax system, a business is taxed at a rate of 2.5 per

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