Small businesses are a cornerstone of our economy. They create jobs that support families and our communities, and that's why our budget introduces measures to allow small businesses to grow and create jobs. It's no wonder the Canadian Federation of Independent Business has applauded this measure and gave the budget an A.
The bill would reduce the small business tax rate to 9% by 2019. Using the example of a small business with a taxable income of $500,000, this tax cut and all the tax relief our government has provided since 2006 would result in a nearly 50% decrease in federal taxes, the biggest tax cut in 25 years. This is money small businesses can use to reinvest in the economy and create jobs.
But it goes further. Bill C-59 would amend the Canada small business financing program to allow more small businesses to apply for financing, and allow larger loans to be made available. It would also increase the lifetime capital gains exemption for farmers and fishermen to allow farm and fishing business owners to better ensure their financial security for retirement, by allowing them to keep more after-tax dollars in their pockets following the disposition of their property.