Archived - Harper Government Supports Small Businesses in Canada

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Government measures provide tax relief, lower EI premiums and reduced regulatory burden for small businesses

September 17, 2014 – Ottawa, Ontario – Department of Finance

Speaking to the Canadian Convenience Stores Association, Minister of State (Finance) Kevin Sorenson today underscored the Harper Government’s commitment to small businesses, which are vital to the long-term prosperity of Canada. He highlighted a number of key initiatives in Economic Action Plan 2014, and subsequent measures, that better support the needs of small businesses, while achieving the Harper Government’s plan to help businesses create jobs and economic growth while keeping taxes low and remaining on track to balance the budget in 2015.

Quick Facts

  • The new Small Business Job Credit is expected to save small businesses more than $550 million over the next two years.
  • The Small Business Job Credit will effectively lower small businesses’ Employment Insurance (EI) premiums from the current legislated rate of $1.88 to $1.60 per $100 of insurable earnings in 2015 and 2016.
  • Almost 90% of all EI premium-paying businesses in Canada will receive the credit, reducing their EI payroll taxes by nearly 15%.
  • Reductions in the small business tax rate and increases in the small business income limit are providing an estimated $2.2 billion in tax relief in 2014.
  • The amount of tax paid by a small business with $500,000 of taxable income has declined by 34.2% as a result of actions taken by the Harper Government, a tax savings of $28,600.
  • A 2014 study by PricewaterhouseCoopers analyzing the ease of paying taxes in 189 countries found that preparing, filing and paying taxes each year takes a business in Canada 25% less time than a business in the United States.

Quotes

"Small businesses are crucial to Canada’s long-term prosperity. Canadian families depend on the jobs they create and the services they provide. That is why the Harper Government will continue to foster an environment for small businesses to grow and prosper."

- Kevin Sorenson, Minister of State (Finance)

Additional Links

Media Contacts

Meagan Murdoch
Director of Communications
Office of the Minister of State (Finance)
613-369-5696

Jack Aubry
Media Relations
Department of Finance
613-369-4000

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