Budget 2013/14 continues measures to help small and large businesses in Canada.
Your government has extended and expanded the hiring credit for small business for one year by providing a $1,000 credit for EI payment premiums for new employees of qualifying small businesses. This benefits 560,000 businesses in Canada.
The budget also reduced the small business tax rate from 12 per cent to 11 per cent, and increased the lifetime Capital Gains Exemption to $800,000, allowing small business owners to keep more money from the sale of their business for their retirement. Small businesses with a taxable income of $500,000 have seen their federal taxes decrease from $83,000 in 2006 to $55,000 in 2013, allowing more money for investment expansion. The government of Canada has also taken measures to cut red tape and make dealings with the federal government easier by reducing the burden on small business.
The budget continues the accelerated Capital Cost Allowance for new manufacturing machinery and equipment, purchased by large businesses. A number of businesses in my constituency have benefited from this program as well as from the elimination of tariffs on machinery and equipment purchased from other countries. The Canada Job Grant to assist in skills and trades training will be a key for large businesses to meet their employee needs now and in the future.
Your government has also funded key investments in research and technology to ensure Canadian businesses can compete on the world stage.
The Canadian Manufacturing Coalition, representing 100,000 companies and 1.8 million workers, stated: “Our organizations have been major proponents and supporters of the government’s recent tax policies, such as the reductions in corporate income taxes and the Accelerated Capital Cost Allowance. We have supported these measures as a key tool to drive business investment and… critical tools to soften the impact of the recent global economic downturn on Canada.”
These initiatives are all part of your government’s Economic Action Plan, and it is working.
Submitted by Okanagan-Shuswap MP Colin Mayes