Ottawa, October 4th, 2011 – Today, Finance Minister Jim Flaherty introduced the Keeping Canada’s Economy & Jobs Growing Act. This legislation includes key elements of the Next Phase of Canada’s Economic Action Plan – A Low-Tax Plan for Jobs and Growth.

Canada’s economy has performed well since the global recession took hold, and has already seen nearly 600, 000 net new jobs created since July of 2009 – the strongest growth in the G7. Forbes, the influential business magazine, has just ranked Canada as the best country in the world to do business.

However, Canada’s recovery remains fragile amidst a world of uncertainty, and that is why the Harper Government’s top priority remains completing Canada’s economic recovery.  Today’s legislation includes a key part of the Government’s plan to help employers do just that – the Hiring Credit for Small Business.

Every time a small business hires an additional worker, it results in additional costs – everything from training to EI premiums.

The Hiring Credit for Small Businesses will give the small business owner a tax cut equivalent to the additional EI premiums, up to $1,000. As a result, a small business could hire an additional worker at a salary of up to $40, 000 or two part-time workers at a salary of up to $20,000 each and they would not have to pay additional EI premiums. 

This tax cut will provide an incentive for approximately 525, 000 small business and entrepreneurs across Canada to hire new workers to help them expand their enterprises and take advantage of new opportunities.

Brant MP, Phil McColeman, applauded the measure. “This is the type of concrete action that will make a real difference for small businesses across Brant who are looking to expand and create jobs,” said McColeman.

The Canadian Federation of Independent Business – the voice of small business in Brant and across Canada – has stated that they are “extremely pleased” by this tax cut, declaring it a “major help to small firms in growing their workforce.”