As part of the ongoing Budget implementation process, the Canadian Finance Minister has introduced legislation designed to generate job creation and stimulate economic growth, with measures including a series of key new tax credits.
Introduced by Jim Flaherty, the Keeping Canada’s Economy & Jobs Growing Act includes elements of the Budget he reproduced in June, titled "The Next Phase of Canada’s Economic Action Plan—A Low-Tax Plan for Jobs and Growth", and follows the introduction of a Ways and Means motion implementing certain other budget measures. The Act focuses heavily on the introduction of new tax credits.
The tax credits established or reformed in Flaherty's new act are as follows:
Other measures included in the Act are:
Flaherty said of the Act that: “Our government is focused on what matters to Canadians—creating jobs and promoting economic growth. While Canada has the strongest job growth record in the G-7 with nearly 600,000 net new jobs created since July 2009 and the IMF projects that we will have among the strongest economic growth in the G-7 over the next two years, we are not immune from global economic turbulence. That’s why we need to stay the course and implement the Next Phase of Canada’s Economic Action Plan.”
Commenting on the legislation, Dan Kelly, senior vice-president for the Canadian Federation of Independent Business (CFIB), pointed to the introduction of a temporary hiring credit as especially important. He said that: “Since the 2011 budget announcement, many members have called about the credit and reported it will make it easier for them to hire, enhance wages or adjust to rising Employment Insurance premiums. This is a particularly important initiative as the government has declared 2011 as the Year of the Entrepreneur.”.
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