The Canadian Federation of Independent Business (CFIB) is pleased that the June federal budget delivered on earlier commitments to small business. “We give credit to the government for continuing to work to balance its books while finding important, low-cost ways to help small firms grow the economy. With measures focusing on reducing red tape, the introduction of an Employment Insurance (EI) tax credit and better transparency and accountability at Canada Revenue Agency (CRA), government took some important steps to enhance job creation and recognize the economic contributions of small businesses in Canada,” said CFIB president Catherine Swift in a press release.
Some key budget announcements include:
Introduction of an EI Hiring Credit for small business that will exempt some small employers from paying EI premiums on an increase in their payroll. As an example, this credit will allow a firm with less than $413,000 in payroll to create one new $40,000 per year job without paying any EI on that new position.
Measures to reduce unnecessary rules, regulations and paperwork, continuing the work of the Red Tape Reduction Commission and a continued commitment to BizPal.
Ongoing work to introduce Pooled Registered Pension Plans (PRPP). While the CFIB welcomes the ongoing work to introduce this retirement option, it remains concerned with the reference to make “modest enhancements” to the Canada Pension Plan (CPP). Another tax increase is not the answer.
Swift said the federation is disappointed further action wasn't taken to reduce the growing gap between public sector and private sector compensation, benefits and pensions.
“This was a missed opportunity to address the massive unfunded pension liability and deal with the ever rising cost of Canada's civil service. This is really about fairness to taxpayers that will ultimately get stuck with the bill if not addressed soon,” she said.
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