Mr. Speaker, I appreciate the opportunity to outline how our Conservative government is putting more money in the hands of our job creators, the small business entrepreneurs who drive our economy.
Sadly, this motion we are debating today clearly illustrates the Liberals complete misunderstanding of how economies grow and prosper in the real world.
The motion would suggest somehow that lower payroll costs and taxes for small businesses would result in job losses. The reality is entirely the opposite. Small business owners are focused on growing their business and look further down the line than the narrow-sighted approach of which the Liberals accuse them. They will not damage their long-term growth for the sake of a few hundred dollars in the short term.
The reality is that lower payroll taxes actually create jobs. They empower Canadian entrepreneurs, leaving more of their own hard-earned money for them to invest and grow their businesses, supporting the families and communities that depend on them.
Our government's recent small business job credit is just the latest in a range of measures that would cut costs and support small businesses in creating jobs and growth.
The small business job credit would effectively cut EI payroll taxes by 15% and save small businesses over $550 million. Also, in keeping with our efforts to minimize the paper burden and cut red tape for small businesses, this credit would require no new paperwork. The Canada Revenue Agency would automatically determine eligibility and calculate the amount of the credit. Indeed, the small business job credit is good news for small business and good news for jobs and growth.
However, the Liberals need not take my word for it. They can hear this, should they choose to listen, from the people who would know best: small businesses themselves.
Dan Kelly, President of the Canadian Federation of Independent Business, has concluded that:
...the credit will make it...easier for small employers to hire that...extra worker, increase employee wages or...pay for workplace training....
He concludes that:
Across Canada, we estimate the $550-million left in the hands of small businesses will lead to 25,000 person years of employment....
He adds that:
...it couldn't come at a better time. ...CFIB's most recent Business Barometer found that the economy is trending up, and more small businesses are looking to expand than shrink. Measures like this give reassurance to job creators, which can make the difference when deciding whether to hire....
Perhaps most important, Mr. Kelly also had words for those espousing the sort of ridiculous claim at the core of today's opposition motion. He has stated, and I quote:
Some suggested companies will lay off staff or hold off hiring to stay under the threshold to receive the credit. I've got news for them: small business owners don't have time to research the eligibility requirements, then carefully manage their payroll to receive a few hundred dollars over two years.
Unlike the Liberals, we understand small business owners are focused and busy with creating jobs and the growth of their businesses. They discredit these entrepreneurs by making allegations that they will spend time trying to game the tax system for the short term at the expense of their own future ability to grow.
We have more confidence in their long-term planning. We believe they want to grow their businesses the Canadian way, through hard word and innovation; and moreover, we appreciate the contribution they make to the Canadian economy. Small businesses employ half of the working men and women in Canada's private sector. They account for a third of our country's GDP. Small businesses drive our prosperity and give back to the community, which is why the small business job credit is just the latest of our government's effective actions to support their efforts.
We have cut their red tape. We implemented the one-for-one rule: for every new regulation imposed by government, a regulation must be removed. By the end of 2013, that rule had reduced the administrative burden by $20 million.
Then we cut their taxes. We cut the small business tax rate to 11%, and increased the amount of income eligible for this lower rate. Together, these changes are providing small businesses with an estimated $2.2 billion in tax relief in 2014 alone.
Last year, we froze EI premiums for three years, providing total savings of $660 million in 2014 alone, and we instituted the seven-year break-even rate, starting in 2017 to ensure that any surplus in the EI account will be used for EI expenses.
With these and other measures introduced by our Conservative government, Canada is a more attractive place to invest and do business. In fact, Canada leapt from sixth to second place in Bloomberg's ranking of the most attractive destinations for business. According to KPMG, Canada's total business tax costs are the lowest in the G7, and 47% lower than those in the United States.
However, we will not be satisfied with this success. We live in difficult economic times and cannot be complacent.
This job credit represents yet more action by our government to lower taxes for all Canadians. An average family of four now pays $3,400 less in taxes as a result of actions taken since our government took office.
Under our government, the amount of income tax paid by small businesses with $500,000 of taxable income has declined by over 34%. That is a tax saving of over $28,000 that can be reinvested in the business to create jobs. Let us not kid ourselves. Small businesses will reinvest in their growth and in their employees as they are able to. These measures will support them in being able to do this.
Once we return to balanced budgets next year, our top priority will be to lower taxes for Canadians even more. We will do so on the understanding that lower taxes and payroll costs support jobs and growth. I will, therefore, in conclusion, encourage the hon. members to support us in our efforts and to reject today's motion.