The Canadian Federation of Independent Business is disappointed with this week's federal budget. CFIB Manitoba spokesman Elliot Sims says the Trudeau government reneged on a couple of key tax cut promises, in particular, the corporate income tax rate.

"Small businesses were expecting that rate to drop by half a per cent for the next three years. And now that is gone. What that means is that there will $900 million less in the pockets of small businesses to reinvest in their businesses, and to hire additional employees than what they had anticipated."

He says he's also alarmed by the Trudeau government's efforts to expand Canada Pension Plan benefits, which has the potential to hurt small business.

"Under some models that are being discussed, now we could be seeing CCP rates going up by $1,000 per year for employees, and up to $1,000 a year per employee for each business."

Many small firms will also be upset that the government has ended the review of passive/active income rules, denying access to lower tax rates to small business owners running self storage facilities and camp grounds, among others.

Sims adds, the Liberals also broke its promise to introduce an employment insurance credit for employers hiring youth.

"The federal budget did nothing to move forward on a youth hiring credit through the EI system that was promised in the federal election. This would have made it far easier for small businesses to hire young Canadians who are looking at their first full time job. Now it'll be that much harder to do something."