Red Deer MP highlights success of tax savings measures during small business week
OTTAWA - Earl Dreeshen, Member of Parliament for Red Deer along with the Honourable Gail Shea, Minister of National Revenue marked Small Business Week 2012 today by highlighting the Harper Government’s tax-savings measures that have spurred economic growth by keeping taxes low for 500,000 Canadian businesses.
“Keeping taxes low for small businesses is a cornerstone of our Government’s long-term plan for jobs, growth, and prosperity,” said Dreeshen. “Small businesses are the engine that drives economic growth and job creation in Canada, and Small Business Week is a great opportunity to highlight some of our tax-saving measures that are helping them remain competitive.”
Key measures include:
- Small Business Deduction: This deduction allows small businesses to reduce their net tax rate for an eligible amount of active business income. Since 2006, the Harper Government has lowered this rate from 12% to 11%, and has increased the annual amount of eligible income from $300,000 to $500,000. In 2010 over 500,000 Canadian-controlled private corporations benefitted from the improved Small Business Deduction.
- Hiring Credit for Small Business: The Economic Action Plan 2012 extended the Hiring Credit for Small Business, which helps offset the cost of hiring new employees and will be automatically applied when a qualifying business files its 2012 T4 information return. This credit is provided quickly and efficiently, without any additional paperwork for businesses
- Apprenticeship Job Creation Tax Credit: The Harper Government recognizes the importance of apprenticeships in building a strong workforce. The Apprenticeship Job Creation Tax Credit gives eligible employers a tax credit equal to 10 per cent of the wages paid to qualifying apprentices in the first two years of their contract. Over $21 million has been claimed by 1,200 eligible employers for tax year 2011.
“As the MP for Red Deer, I understand the importance of small businesses to our community in creating jobs and growing our local economy,” added Dreeshen. “The Apprenticeship Job Creation Tax Credit is an excellent way that our Government is supporting our local employers in creating new positions for skilled workers. During Small Business Week it is especially important that we recognize the hard work of our entrepreneurs and their employees.”
“Our Government recognizes the importance of small businesses to the Canadian economy. That is why we have introduced important tax credits and other initiatives to support our entrepreneurs in creating jobs and growth,” said Minister Shea. “We are pleased to celebrate Small Business Week, and will continue to put in place measures that support Canadian job creators.”
Thousands of Canadians - from seniors to students to small business entrepreneurs - have benefited from a broad range of tax benefits and credits that respond to their unique needs. For more information on these and what the CRA is doing to help create jobs and growth for Canadians, go to www.cra.gc.ca/taxsavings.Small Business Week is being celebrated this year from October 14 to 20. In its 33rd year, the Week offers an occasion to celebrate the contributions of Canadian small businesses across the country.