New budget to benefit small businesses, says CFIB
The Canadian Federation of Independent Business (CFIB) has said that the new federal budget is expected to provide several benefits to the small businesses in the country.
The new federal budget, which was announced on Thursday, will expand the tax credit on employment insurance premiums for new hires. This will allow about 560,000 small businesses to take advantage of the temporary one-year measure. The federal government will forge an estimated $169 million in foregone tax during the current financial year.
The government has also raised the amount of tax free claims permitted for the small business at the time of sale of the business from 2014. According to the budget estimates, the new measure is expected to provide $5 million in tax relief this year and $15 million next year. teh budget will also allow the companies with EI premium costs of up to $15,000 a year to claim up to $1,000 in tax credits on new hires compared to $10,000 in EI premium costs earlier.
Dan Kelly, the federation's president and chief executive officer said, "Overall, we give the budget a solid B. There's enough in the budget to support small business optimism."