Reduce GST Burden on the Self-Employed
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Currently, self-employed people who make over $30,000 per year are required to register for GST. The 1% reduction allowed when using the Quick Method is also based on $30,000.
This threshold has been unchanged since the introduction of GST in 1991. In the 26 years since then, other areas of taxation have been indexed annually, or periodically adjusted in increments. For example small corporation limits have jumped from $200,000 to $500,000.
Adding the administrative burden of GST based on 1991 income levels is unfair and does not contribute to an environment of fostering entrepreneurship. The business owner is already working hard at the myriad of things it takes to run a small business, while struggling to keep profits high enough to make a basic living. This is yet one more set of rules to learn and administer. Plus, it makes it harder for these small businesses to compete in the marketplace when their products or services suddenly cost 5% more.
We propose that these limits be increased to $55,000 (that is what $30,000 in 1991 is worth today) and incrementally increased at regular intervals.
This will give small businesses a bit of breathing room before they have to start jumping through another set of bureaucratic hoops.
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