Federal budget receives big praise from small business organization

The Canadian Federation of Independent Business is calling the federal budget a win for small businesses.

Vice-president for Atlantic Canada,Jordi Morgan, says there were several pieces of good news, including a cut to the small business tax rate.

"CFIB doesn't use the word thrilled very often around budgets, especially federal budgets, but this one we're giving it an 'A'," Morgan said.

Finance Minister Joe Oliver will slash the small business tax rate to nineper cent from 11 per cent by 2019.

Morgan says that will have an impact on the bottom line of small business owners.

"We're talking about a tax reduction that is essentially 18 per cent," he said. "That means some big savings like $1.2 billion per year after this is implemented," he said.

Morgan is concerned that the federal tax cut could open the door to rate increases provincially, something he says was recommended in the Nova Scotia Tax and Regulatory Review.

Welcome news for farmers and fishermen

The report authored by LaurelBroten recommended the Nova Scotia government increase the small business tax rate from threeper cent to eightper cent.Jordi Morgan does not want to see happen.

"We will be watching the Nova Scotia government very carefully to ensure that doesn't happen," Morgan said.

Morgan said there were several other items in the budget that he felt earned it an "A", including a lifetime capital gain exemption.

He says it's welcome news for both farmers and fishermen.

"For those folks, going up to a million dollars as of today and CFIB has been calling for this for years," he said.

Morgan says there is a provision in the budget to legislate the changes before the electionand he hopes that will makeit harder to unwind these decisions after the fall federal election.