Mr. Speaker, I am happy to see that the entire Green Party caucus is here tonight for this late show. I think that is a first.
Let me remind the hon. member that our government has a proven track record of success when it comes to supporting our small businesses. On this side we recognize that small businesses create good jobs and serve engines of economic growth and prosperity.
Let me remind the member that small businesses employ about half of the working men and women in Canada's private sector. They account for a third of our country's GDP. On top of that, small businesses drive our prosperity and give back to the community.
We know that small business owners should be spending time growing their businesses and creating jobs. They should not be burdened with red tape and high taxes. We 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 over $20 million.
We also cut their taxes. We cut the small business tax rate to 11% and increased the amount of income eligible for this preferential rate. Together these changes are providing small businesses with an estimated $2.2 billion in tax relief in 2014 alone.
Under our government, the amount of income tax paid by a small business with $500,000 of taxable income has declined by over 34%, a tax savings of $28,600 that can be reinvested in the business to fuel growth and create jobs.
Let me be clear, our actions on EI are saving money for employees and employers. Last year, we froze EI premiums for three years, which is expected to save employers and employees $660 million in 2014 alone. 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.
Under this government, Canada is open for business. In 2013, Canada leapt from sixth to second place in Bloomberg's ranking of the most attractive destination for business. When was the last time that happened? According to KPMG, total business tax costs in Canada are the lowest in the G7, 46% lower than those in the United States.
However, we will not be satisfied with this success. We live in uncertain economic times and cannot be complacent. That is why our government introduced the new small business job credit. This new credit will effectively lower small business employment insurance premiums from the current rate of $1.88 to $1.60 for $100 of insurable earnings for 2015 and 2016.
Any firm that pays employer EI premiums equal to or less than $15,000 in those years would be eligible for the rebate. That means 90% of employers making EI contributions in Canada, about 780,000 in total, would directly benefit from this credit.
In addition, this credit will require no new paperwork. The Canada Revenue Agency will automatically calculate it on their business return. Overall, our small business job credit will reduce the EI premium rate by nearly 15%. We expect it to save small businesses over $0.5 billion over the next two years. It is precisely why our government has introduced the small business job credit as the latest in our government's effective action to support small business efforts to create jobs and grow the economy.
We refuse to attack job creators with massive tax hikes in the form of increased payroll taxes or increased regulatory burdens.
Let me remind the member opposite that this measure has been applauded by groups that actually understand small business. Take the Canadian Federation of Independent Business which stated, “It's a big, big deal for small business. It's good news for people looking for jobs”.
Indeed, I can go on. I certainly hope the member opposite will recognize the good things that this government has done for small business and to support them as well.