Finance Minister Bill Morneau will announce a small business tax cut on Monday, CTV News has learned.
Senior government officials say the small business tax, which currently stands at 10.5 per cent, will be lowered to nine per cent.
That was a Liberal campaign promise, and Monday’s announcement will come in the wake of loud and angry pushback to the government’s proposal to cut tax loopholes for businesses.
Despite the controversy, government officials tell CTV News that the Liberals will only tweak their proposed tax reforms, not scrap them altogether. Those tweaks are expected to be announced gradually throughout the week.
The first announcement will be on so-called “income sprinkling,” which allows business owners to split their income among family members and lower their income tax rate.
The government will continue to allow income sprinkling, but only if business owners can prove that they are splitting their income with family members who actually work in the business.
As CTV News previously reported, the Liberal caucus will hold a “special” meeting on Parliament Hill Monday morning, featuring the finance minister. Prime Minister Justin Trudeau will also be there.
With files from CTV’s Ottawa Bureau Chief Joyce Napier
