It was recently announced that the Government of Saskatchewan will be raising the amount of income a small business can make and still be taxed at the lower rate of 2% from $500,000 to $600,000.
"There was an announcement that there would be an income tax cut," explained Jackie Wall, Executive Director for the Estevan Chamber of Commerce. "And of course, that is always great news, whether it's a personal tax cut or a business tax cut."
"I would say that anytime a business generates more revenue or saves as far as tax or expenses, that tends to go back into the business. That's how small and medium sized businesses work. They are very conscientious in growing their business, sustaining their business, and maintaining their business. Any savings that will result will probably go back directly into the business which will lead to hopefully a little bit of economic growth within our community and take a little pressure off businesses."
"I think it will have a marginal impact. Of course anytime you can earn more and pay less, that's always a good thing. And I think it also accommodates for inflation rates and for the fact that businesses need to earn more money, pay less taxes and keep up with trends in business in general."
“Small businesses are so vital to the health of the economy that our government decided to further enhance the Saskatchewan Advantage,” Finance Minister Donna Harpauer said. “Increasing the income threshold to $600,000 provides Saskatchewan small businesses with an incentive to hire more workers and invest new capital right here in our province. Meanwhile, rates for personal income tax in Saskatchewan continue to be reduced, which also helps create jobs.”
“Once implemented, Saskatchewan’s 12 per cent corporate income tax rate will continue to be competitive and among the lowest in the country, maintaining our province’s advantages when attracting new investment and jobs,” Harpauer said.
Wall added that the tax cut might lead to a growth in small businesses within the province.
"I'm really hoping that it does. I hope that it will attract more businesses or perhaps it will lead to businesses expanding in this area or perhaps contemplating moving a headquarters. You never know how far the impact will go. I'm sure the government will be on top of that and make sure they have the documentation to support what a great idea this was and to let businesses know that they are looking to support in whatever way they can."