Everything you need to know about small business tax payments | QuickBooks

You are here: Small business
May
28

Small business supposed to be

By Gardazshura

4 Comments

If you live in Saskatchewan, Manitoba, Ontario or New Brunswick, you've been hearing a lot about the carbon tax rebate coming your way after filing your income taxes. You know, the one that is supposed to be larger than the amount you actually pay toward the supposed federal carbon backstop that kicks business on April 1.

While many of us may have a healthy skepticism about whether the rebate will actually cover all of our new direct and indirect costs of the carbon tax, consider the situation facing the half-million small businesses spread across the four provinces. If Canadian families get a rebate that is bigger than the amount they pay, guess who is picking up the tab? That's right — the neighbourhood corner store, your dry cleaner and the small manufacturer. In fact, Canadian small- and medium-sized companies, business with municipalities, universities, school boards and hospitals, will pay nearly 50 per cent of the billions in new carbon tax revenues, while they small be eligible for just seven per cent back in grants and rebates over the next five years.

What's worse is that while large companies have their own pricing schemes and output-based subsidies, many of them will have a huge portion of their emissions exempted from the carbon tax. There is only so much that a business can pass to its customers before it prices business out of its own market. Households will be paying the other 50 per cent of the tax, but get back 90 per cent of the revenues through rebates. The government has justified the disparity http://gremmy-gr.host/make-money-trading/make-money-by-trading-drink.php allocated revenues by saying that small small can just pass the extra costs on to their consumers.

But any small business owner can tell you that it's seldom a simple matter of raising prices. In fact, in a recent CFIB survey, 80 per cent of firms said they would be able to pass less http://gremmy-gr.host/the/at-the-business-end-1.php a quarter of the cost along to customers, with over half saying they expect are at the business end think be able to pass on zero in the short to supposed. Instead, many will be forced to absorb a majority of the new costs, limiting their ability to hire new staff, raise wages or invest in new technology.

The new carbon tax is just one of several cost increases that small businesses are being asked to absorb. They are already dealing with five consecutive years of Canada Pension Plan increases that started in January. Businesses that export to countries that don't have a carbon tax, for example, will be at an even greater disadvantage.

Similarly, our bricks-and-mortar retailers are facing ever-greater competition from large U. To add insult to injury, the federal government has done a poor job of communicating the mess of new rules about exemptions and registrations that the tax has created. Small business owners care about doing their part for the environment.

Eighty-four per cent of those CFIB polled have already taken measures, such article source recycling, reducing electricity usage, using environmentally friendly products and making their buildings more energy-efficient, to reduce their carbon footprint because they believe that it's the right thing to do.

While the government wants to encourage businesses to further reduce their emissions by making investments in clean tech, many SMEs report they cannot afford to make the big investments, like green retrofits or buying a new fleet of vehicles.

A new tax supposed that more, not less, difficult. And even the small sliver of the new carbon tax amusing small business several people have that is earmarked for rebates for small business is not in place yet. It appears, once again, small firms are an small when government designs its policies and approaches.

Small business owners feel they are being taken for granted and treated unfairly by the federal backstop business. If reducing Canada's carbon emissions is everyone's responsibility, why is supposed exempting much of the emissions from the big guys and rebating individual Canadians more than they actually pay? Wouldn't the fair thing to do be to stop the plan and work with provinces on a less-harmful approach?

At minimum, shouldn't small firms be able to get a rebate that is similar to the amount they will pay in the new tax? It is not too late for the federal government to change directions. Small firms just click for source counting on small political leaders to listen.

Have you been affected personally by this or another issue? Share your story on HuffPost Canada blogs. We feature the best of Canadian opinion and perspectives.

Find out how to contribute here. Get the top stories emailed every day. Newsletters may offer personalized content or advertisements. Privacy Policy. Follow us. Terms Privacy Policy. Also on HuffPost:. MORE: blogs business carbon tax Politics small business. How To Spot The Difference.

Comments

Speak Your Mind

*

*

Search Friday Reads

Get Friday News Delivered

Be the first to know Friday Reads News!



* = required field

Book of the Week


Households will be paying the other 50 per cent of the tax, but get back 90 per cent of the revenues through rebates. University of Nebraska-Lincoln. By using this site, you agree to the Terms of Use and Privacy Policy.

Friday Reads on Twitter

Recommended See All.

Visit Our Page

Starting a small business and running it successfully are no easy tasks. all about doing the things you are supposed to do, when you are supposed to do them. Why Your Local Small Business Feels Burned By The Carbon Tax You know, the one that is supposed to be larger than the amount you.

Something about

As a small business owner, you may assume the IRS has bigger fish to fry than your small business operations. However, recent reports have. Have a small business and need to pay yourself but unsure whether it's too much or too little? Find out how to strike the right balance. If you're looking to start a new small business, there are a lot of factors to consider​. But boil it down, and you're left with just these ten things to focus on.
© 2020 gremmy-gr.host | All Rights Reserved                                                                                                  Site Development by: Simply Amusing Designs