Provinces in Canada generally tax business income a t two different rates. Incomes below a certain cutoff are deemed small business income and are taxed less than income above a cutoff. This is in line with the thinking small business should be favoured. Across Canada the Low Rate ranges from zero to 4.5% while the High Rate runs 11% to 16%.
The Nova Scotia government taxes at a Low Rate of 3% and at a High Rate is 16%. So we are middle of the pack for small business while the rest above the cutoff pay the highest rate in Canada. Nova Scotia also has the lowest cutoff in Canada (at $350,000).
Thankfully this spring our government has decided to change this. By addressing our noncompetitive tax structure government has finally realized businesses need to be encouraged to grow.
Oh, wait! Sorry.
Actually, Nova Scotia wants to increase the Low Rate to 8%! Almost twice the next highest in Canada while maintaining the highest High Rate in Canada and the lowest cutoff in Canada. More and more taxes are needed to continue to expand the size of our government to record levels year after year after year.
It appears in Nova Scotia growing government is more important that growing the economy.
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