SmallBusinessNewz

If a small business eschews growth due to the impact of future higher tax rates, perhaps the country in question needs to rethink the tax issue.

The Financial Post in Canada called for tax reform, which would eliminate the preferential rates charged against small business. Citing research from a think tank called the C.D. Howe Institute, the Post said there is no incentive for a business to expand, hire more people, and be more productive.

"Reforming small business taxation would remove major incentives for firms to stay small, encourage their growth and make the Canadian economy more competitive overall," the Post said in citing the report's conclusion

Canada's generosity may be greater than that of other countries when it comes to small business tax rates. But is it too generous, or is the rest of the Canadian tax code so onerous for businesses that only a fool or a captain of industry dreams of expansion?

Whatever the Canadians decide, they should ensure a balance exists. If they simply jack up the tax rate on small businesses, they may end up killing companies that could at least support a few employees otherwise. That can't be a good thing.