Small Business Tax Credit to Help Businesses Create Jobs
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The Harper Government is squarely focused on creating jobs, growth, and long-term prosperity. In doing so, we recognize the fundamental importance of small businesses in fuelling the Canadian economy. That is why we recently announced the introduction of the Small Business Job Credit, which will lower small businesses’ payroll taxes by 15% for the next two years, saving them an expected $550 million over two years. These savings will help small businesses in our constituency hire more employees and grow our economy.
According to the Canadian Federation of Independent Businesses (CFIB), small-and medium-sized businesses employ 70% of the total private sector workforce in Canada! That’s why we have introduced numerous measures since 2006 to support small business growth – including the temporary hiring credit and the EI rate freeze. In total, small businesses have seen their taxes reduced by 34% since 2006.
The Small Business Job Credit will reduce EI premiums by 15% for the next two years. Any firm that pays employer EI premiums equal to or less than $15,000 in those years will be eligible for the credit, which will be applied automatically.
By supporting small businesses in our community, and across the country, we are helping to ensure that Canada’s economy continues to thrive. And the results are showing: we have created over 1.1 million net new jobs since July 2009 (over 82% full-time and 78% private sector), we are projected to have among the strongest economic growth in the G7 in the years ahead, and Bloomberg has recently ranked Canada as the 2nd best country in the world to do business.
