Government to cut small business tax rate to 9%

Ottawa will announce plans today to cut the small business tax rate from 10.5 % to 9 % today as it attempts to quell a backlash to proposed tax reforms that have stung the Liberal government.

Finance Minister Bill Morneau's move to reduce the tax rate paid by small businesses is aimed at deflecting criticism of proposed tax reforms that have angered small business owners, who said the changes would hurt the same middle-class Canadians the government is purporting to help. Some premiers and Liberal backbenchers also objected to the reforms.

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