Bill Morneau defends Liberal's unchanged corporate tax rate

As small businesseslobaccusations at the federal government for failing to deliver on a corporate tax cut, Finance Minister Bill Morneausaysthe Liberals' budget is helping business by helping customers.

With their 2016 budget, the Liberals reneged on a campaign promise to cut thecorporate tax rate to nineper cent by 2019,choosing instead to fix the rate at 10.5 per cent.

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In a statement, a "deeply troubled"Canadian Federation of Independent Businessestimatedthat this broken promisewouldcost small firms more than $900 million per year by 2019.

But Morneau defended the government'schoices, saying that Liberals'middle-income tax cut, EI reformsand modified child benefit are "improving the situation of every customer of small- and medium-sized businesses in this country."

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Morneau said he spoke with the president and CEO of the Retail Council of Canada, Diane Brisebois,on Wednesday morning.

"She told me that her members are delighted. The retailers understand that having more money in the pockets of the middle class means they have more customers to buy their goods and services."

"I know what businesses want most," saidMorneau."They want a strong and growing economy.

"We know that if we can improve the lives of people who have been struggling, that's actually going to improve the economy."

With files from The Homestretch