Mr. Speaker, we appreciate the difficulty that the opposition is having in finding anything to criticize in this budget presented by my colleague, the hon. Minister of Finance.
In addition to reducing taxes for all Canadians, this budget contains significant measures for business, and especially small business. The reaction from small business has been positive. The Canadian Federation of Independent Business has been more than enthusiastic. Let me read for members directly from the CFIB news release on our Conservative budget:
This budget exceeded our expectations. Small business owners should love this budget. It is clear that focusing on small business priorities not only makes good economic sense, it makes good political sense. All political parties in this minority government should support these initiatives.
What else did the CFIB have to say about the budget? It also said:
The budget hits virtually all of our members' tax priorities: maintaining most of the personal income tax cuts previously announced; raising the small business corporate rate threshold from $300,000 to $400,000; extending the business loss carry-forward provision to 20 years; lowering the small business corporate tax rate to 11 per cent; lowering the general corporate tax rate and lowering the GST rate to 6 per cent July 1, which gives business owners suitable time to adjust to the new rate.
Those words are directly from the Canadian Federation of Independent Business. Small business wanted the government to provide time to prepare for the implementation of the GST cut. The CFIB is satisfied with the time being provided.
The agency does not anticipate that businesses will have difficulty in applying the reduced rate. Retail stores will need to adjust point of sale equipment such as cash registers. Other businesses may need to update pre-authorized payment details. I have spoken to small businesses. They say that in many cases it will take a matter of only hours to change this over, so it is in fact a very accurate reflection.
However, the budget has proposed straightforward implementation rules and in most cases the changes will be minimal and straightforward. Whatever costs a business may incur will be deductible as routine business expenses. The agency has already posted information on the website about how to apply the rate reduction. Anyone with questions about this rate reduction in any specific situation can call our dedicated toll free phone line. The line is open weekdays from 8:15 a.m. to 8 p.m. locally.
The CFIB release notes that it is very important to small business that debt reduction remains a government priority. The budget projects a decline in debt to GDP ratio to 31.7% by 2007-08 and to 25% by 2013-14, something else small businesses very much welcomed.
The budget contains a number of specific small business initiatives. The CFIB announced that it strongly supports these measures, which include: allowing fishermen to claim the $500,000 capital gains exemption; a new employer tax credit of up to $2,000 to hire apprentices; and allowing tradespeople to claim a $500 deduction for the cost of tools.