TORONTO – Ontario’s premier says a tax cut for the province’s small businesses is intended to support them but may not fully offset the impact of an increasing minimum wage.
Kathleen Wynne says that while the province had promised small businesses support, there was never a commitment to offset the effect of the wage hike.
READ MORE: Ontario business coalition urges five-year implementation of minimum wage hike
She notes that the government will have to assess the impact of the wage increase as it continues to roll out.
The province announced in its fall economic update yesterday that it will cut the corporate tax rate for small businesses from 4.5 per cent to 3.5 per cent effective Jan. 1, 2018, the same day the province will increase its minimum wage from $11.60 to $14.
READ MORE: $15 minimum wage could cost Ontario economy up to 90,000 jobs by 2020: TD Bank report
The government’s plan will eventually see minimum wage jump to $15 an hour by Jan. 1, 2019.
The Canadian Federation of Independent Business says the tax cut is welcome but will not be enough to offset the impact the minimum wage hike has on small businesses.
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