Harper Government Is Keeping Taxes Low for Canada’s Job Creators

January 26, 2011

Calgary – The Honourable Ted Menzies, Minister of State (Finance) joined the Honourable Jim Flaherty, Minister of Finance, and other Ministers across the country 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 Menzies, speaking at an event at Standen’s in Calgary.

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, and  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 Menzies. “I also applaud the numerous provinces and territories that have agreed to follow our lead and have lowered taxes on job creators.”

The Government has been delivering substantial tax relief and other support to Canadian businesses and job creators. Since 2006, the Government has eliminated the corporate surtax for all corporations as of January 1, 2008, eliminated the federal capital tax as of January 1, 2006, and increased the income limit for the small business tax rate to $500,000 from $300,000. This Government has also 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.