Photo courtesy of: davidpiccinimpp.ca
Northumberland-Peterborough South MPP David Piccini says Ontario’s plan to cut small business corporate income tax will make a difference locally.
As previously reported, the Ontario government announced a $1.1 billion cumulative cut – from 3.2 to 2.2 per cent over the next three years – in the proposed 2026 budget, saying this will help build a more competitive, resilient and self-reliant economy.
“Small businesses are the heart of our communities here in Northumberland–Peterborough South,” said Piccini. “From main streets in our vibrant downtowns, to family-run businesses on rural roads, these business owners take risk, support the career growth of their staff and are the first to give back when needed.
“This tax cut keeps more money in our community, helping businesses reinvest, grow and stay resilient during uncertain times.”
The reported 31.25 per cent cut to the existing rate is supposed to provide more than 375,000 small businesses across the province with up to $5,000 in tax relief annually, according to the province.
Should the budget pass, officials said this help small business owners manage rising costs and economic uncertainty in the wake of U.S. tariffs and allow people to reinvest savings back into their businesses.
The government also said this cut is a cornerstone of its multi-year tax action plan and builds on previous actions to lower rates back in 2020 and expand eligibility to more businesses in 2023.
To further support businesses, Ontario is also proposing providing corporate income tax relief through paralleling federal measures that allow businesses to accelerate write-offs for a broad range of capital investments, including equipment and other assets. These measures would provide more than $3.5 billion in additional Ontario income tax relief over four years, helping businesses invest, grow and remain competitive, reported officials.
Ninety-eight per cent of businesses with employees in Ontario are considered small businesses and employ more than 2.5 million across the province.
(Written by: Sarah Hyatt)
