The head of the Chatham-Kent (CK) Chamber of Commerce says the small business tax cut in the 2026 provincial budget could translate into millions of dollars going back into the local economy.
CK Chamber President and Chief Executive Officer Rory Ring told CK News Today the one per cent income tax cut may seem small, but it will make a real difference for small businesses and the economy.
The province is proposing to cut the small business corporate income tax rate from 3.2 per cent to 2.2 per cent effective July 1 to ensure Ontario’s small businesses continue to stay competitive and resilient.
Ring said the tax rate cut could result in a $6 million revenue increase in Chatham-Kent that can potentially turn into $12 to $15 million going back into the economy through wages, procurement, marketing, and so forth.
"Once that money gets back into the economy, either through investing into equipment, maybe hiring a part-time individual, that money finds its way into the economy in a variety of ways," said Ring.
Ring added that current times are extremely challenging for small businesses and the tax cut will free up some cash to allow them to invest in their business.
"We want to see our businesses keeping their productivity and their systems and processes as modern as they can so they can compete in today's global economy," Ring noted.
Ring also pointed out that provincial corporate income tax cuts for small businesses are rare, adding they usually come from the federal government.
