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Harper Government Is Keeping Taxes Low for Canada's Job Creators
The Honourable Lisa Raitt, Minister of Labour, joined the Honourable Jim Flaherty, Minister of Finance, and other Ministers across the country today to highlight tax relief for Canada's job creators.
"The economy remains our Government's top priority. That is why we are keeping taxes low for job creators to grow our economy and create jobs for Canadian workers," said Minister Raitt, speaking at an event at Christie Digital Systems in Kitchener, Ontario.
Canada has an overall tax rate on new business investment that is substantially lower than that in any other Group of Seven (G-7) country.
Canada's fiscal position is the strongest of any advanced economy, supported by a competitive business tax environment and the lowest debt-to-GDP (gross domestic product) ratio in the G-7.
On January 1, 2011, the federal general corporate income tax rate was reduced to 16.5 per cent from 18 per cent, in advance of the final legislated reduction to 15 per cent effective January 1, 2012. This reduction will lead to further improvements in Canada's competitiveness and productivity and ultimately higher standards of living for Canadians.
"Low taxes are encouraging businesses to invest more in the Canadian economy, which is stimulating job creation and economic growth," said Minister Raitt. "I also applaud the numerous provinces and territories that have agreed to follow our lead and have lowered taxes on job creators."
The Harper Government has been delivering substantial tax relief and other support to Canadian businesses and job creators in order to help businesses invest and create jobs. Since 2006, the Harper Government has:
- Eliminated the corporate surtax for all corporations as of January 1, 2008;
- Eliminated the federal capital tax as of January 1, 2006;
- Increased the income limit for the small business tax rate to $500,000 from $300,000;
- Reduced the small business tax rate from 12 per cent to 11 per cent; and
- Frozen Employment Insurance (EI) premiums for 2009 and 2010 at their lowest level since 1982.
"We are ensuring that hardworking Canadian entrepreneurs keep more of their hard-earned money to make Canada one of the best places to do business. That's helping them grow and create more jobs, which is good news for the economy and good news for Canadian families," added Minister Raitt.
For more information on the Government's actions to reduce taxes, visit www.actionplan.gc.ca/eng/feature.asp?featureId=4.
For further information, media may contact:
Special Assistant, Media Relations
Office of Minister Raitt