Canadian businesses calling for tax reform, less red tape in federal budget

OTTAWA — Canadian businesses have submitted their wish lists to Ottawa ahead of Thursday’s federal budget.

Topping their priorities are tax reform, less red tape and concrete measures to turn the federal government’s sweeping economic ambitions into investments, productivity and jobs.

Between interviews and pre-budget submissions to the House of Commons finance committee, seven key themes emerged:

1. Tax reform and investment competitiveness

Canadian businesses want tax changes that make Canada more competitive on the world stage and encourage companies to invest.

Dan Kelly, president and chief executive of the Canadian Federation of Independent Business, said small businesses are struggling with rising costs and feel overlooked as Ottawa focuses on major corporations and national-interest projects.

The group wants the small-business tax rate reduced to six per cent from nine per cent and the small-business income threshold increased to $700,000 from $500,000. The threshold determines how much taxable income a small business can earn at a lower rate before the higher federal corporate tax rate of 15 per cent applies.

The Business Council of Canada, which represents chief executives and entrepreneurs from more than 170 companies, is calling for taxes to be more competitive with those in the United States.

Goldy Hyder, the group’s chief executive, said competitive corporate, personal and capital gains tax policies attract investment and encourage companies to spend money in Canada.

Meanwhile, the Canadian Chamber of Commerce is seeking changes to Canada’s implementation of the global minimum tax, which aims to ensure large multinational companies pay at least 15 per cent tax on their profits, and rules limiting interest deductions on business loans.

“If there’s a word that goes with this budget, it’s competitiveness,” said David Pierce, vice-president of government relations with the chamber, which represents more than 200,000 businesses across Canada.

“We may not like the U.S. administration but what they’re doing is making it very competitive, very attractive to deploy capital, to hire, to buy equipment and … I would argue we need to beat it.”

2. Red tape reduction and faster project approvals

Dennis Darby, head of Canadian Manufacturers & Exporters, said Ottawa needs to deliver faster, more predictable regulatory approvals.

“The degree to which the risk on the investment is less, the more likely companies are going to put money on the table,” said Darby.

Kelly called for broader regulatory reforms that benefit small businesses, not just large corporations.

He welcomed Ottawa’s proposed target of eliminating $2 in regulatory costs for every $1 in new costs but said the government must follow through.

“I’ve been doing this for 32 years at the federal and provincial level and I’ve seen more false starts on red tape reform than I have successes,” Kelly said.

3. Turning promises into economic activity

Business groups are waiting for major project announcements to turn into capital investment, construction and jobs.

“What Canadian manufacturers need is really to move from announcements to execution,” Darby said.

Hyder echoed that sentiment, saying the government’s success will depend on whether its policies encourage businesses to invest.

“You measure outcomes, not intentions,” he said. “We need to see the investment come, we need to see the deployment of our own capital.”

The Energy Council of Canada said in a submission to the finance committee that Ottawa should promote Canadian energy exports to attract investment and improve the country’s position in global markets.

4. Tariff relief, trade stability and protection for Canadian industries

The ongoing trade dispute with the United States is a major concern across the business community.

The Canadian chamber’s Pierce called for continued support for tariff-affected industries and more assistance to help businesses diversify into new export markets.

“The uncertainty is absolutely having an impact on a business’s interest in deploying capital and spending money in Canada,” Pierce said.

The Canadian Steel Producers Association, which represents major steel producers across the country, called for stronger measures to protect domestic steelmakers from unfairly traded imports as they struggle with U.S. tariffs.

“We’d look forward to anything that can help us have a level playing field so we can get to building all of the big projects that the federal government has envisioned for Canada,” said Blair Dickerson, president and chief executive of the group.

5. Skilled labour, training and workforce development

Access to skilled labour is another key priority for businesses.

“Even in the current environment, manufacturers still tell us in every survey we do, ‘I can’t find the people with the skills I need,'” Darby said.

The business council wants to see training Canadians already in the workforce prioritized before turning to targeted immigration to address labour shortages.

“First, get your home base right and then think about what comes after that,” Hyder said.

Kelly called for lower employment insurance premiums for small businesses. He proposes that employers pay the same rate as employees on the first $500,000 in payroll, rather than the current rate of 1.4 times the employee contribution.

“A lot of small companies, their biggest expense line is payroll,” he said. “Payroll taxes are really hard because they’re direct taxes on jobs.”

Kelly said reducing those costs could give small businesses more room to train workers and raise wages.

6. Relief from rising business costs

Some business groups are calling for relief to ease inflationary pressures on companies and consumers.

In a pre-budget submission, the Canadian Home Builders’ Association called for extending the federal GST rebate on new homes to all buyers rather than just first-time purchasers.

The association also wants Ottawa to expand agreements with provinces to lower development charges and reduce construction costs.

It said it “supports any action that will bring down costs, cut red tape, and build more homes quickly.”

7. Remove internal trade barriers

Hyder said removing interprovincial trade barriers and improving labour mobility would help strengthen the economy.

“We have to get out of our own way,” he said. “We have to make sure we’re competitive.”

Dickerson, of the steel industry association, called for stronger Buy Canadian policies to ensure major infrastructure projects generate demand for domestically produced steel.

“We’re big on Buy Canada,” she said. “We need to make sure that there are Canadian components in everything we’re building.”

This report by The Canadian Press was first published Nov. 2, 2026.

Brett Bundale, The Canadian Press